The MACD indicator, also known as the MACD oscillator, is one of the most popular technical analysis tools. There are three main components of the MACD shown in the picture below: The moving average convergence divergence is a technical indicator used to assess the power of price movement in a market. What is MACD in the stock market? Understand the MACD formula, trading strategy, and how to use this powerful indicator to make informed investment decisions. Learn how to use the MACD indicator in technical analysis to determine a trend’s strength and why MACD divergences are important.
