moving average convergence divergence
As implied by its name, the MACD is concerned with the convergence and divergence of the two exponential moving averages. Convergences occur when the two lines move toward each other, while divergences take place when the two moving averages move away from each other. The MACD line oscillates above and below the âzeroâ line or centerline. The MACD is above the centerline whenever the 12-day EMA is above the 26-day EMA.