> For the complete documentation index, see [llms.txt](https://gorilli.gitbook.io/gorillionaire/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://gorilli.gitbook.io/gorillionaire/available-signals/macd.md).

# MACD

Moving Average Convergence Divergence

<figure><img src="https://3991155293-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MT_kyAFF1_TCEvQbT0Q%2Fuploads%2FDA9nmMq9QlbZC5Emr64p%2FMACD.jpg?alt=media&amp;token=5c019850-53ab-4cc2-a1da-2c16bef55db6" alt=""><figcaption></figcaption></figure>

MACD is a trend-following momentum indicator that shows the relationship between two moving averages of an asset's price. It consists of three components:

* **MACD Line**: the difference between the 12-day and 26-day exponential moving averages (EMAs).
* **Signal Line**: A 9-day EMA (Exponential Moving Average) of the MACD line, used to identify turning points.
* **Histogram**: the visual gap between the MACD line and the signal line.

When the MACD line crosses above the signal line, it may indicate a bullish signal. When it crosses below, it may signal a bearish move. MACD helps traders identify trend direction, momentum and potential reversals