# Moving Average Convergence/Divergence

### Overview

Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator that shows the relationship between two *moving averages* of a security’s price. The MACD is calculated by subtracting the longer-term EMA *exponential moving average* (EMA) from the shorter-term EMA. The result of that calculation is the MACD line. An EMA of the MACD called the "signal line," is then plotted on top of the MACD line, which can function as a trigger for buy and sell signals.

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