The MACD or Moving Average Convergence Divergence is perhaps the most popular of all indicators used in technical analysis. It was devised by trader Gerald Appel.  Divergence occurs when the price of the asset moves opposite the moving average convergence divergence, which is a signal that the present trend has ended.

A positive MACD indicates that the 12-day EMA is trading above the 26-day EMA. A negative MACD indicates that the 12-day EMA is trading below the 26-day EMA. If MACD is positive and rising, then the gap between the 12-day EMA and the 26-day EMA is widening. This indicates that the rate-of-change of the faster moving average is higher than the rate-of-change for the slower moving average. Positive momentum is increasing, indicating a bullish period for the price. If MACD is negative and on the decline, then the negative gap between the faster moving average (blue) and the slower moving average (red) is increasing. Downward momentum is accelerating, indicating a bearish period of trading. MACD centerline crossovers occur when the faster moving average crosses the slower moving average.