Moving Average Convergence Divergence - MACD

A trend-following momentum indicator that shows the relationship between two moving averages of prices. The MACD is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. A nine-day EMA of the MACD, called the "signal line", is then plotted on top of the MACD, functioning as a trigger for buy and sell signals.

The MACD indicator (moving average convergence/divergence) is used in the finance area for analyzing charts. More information on how to use it can be found for example at "StockCharts", "Investopedia" or "Incredible Charts".

Divergence. Convergence means that the series "reaches" a finite value.

Convergence- When things come together

Divergence- When things move apart

Convergence.