# Moving Average Convergence/Divergence

## Description <a href="#description" id="description"></a>

Moving average convergence/divergence(MACD) indicator graphically describes the mathematical difference between fast and slow exponential moving averages. The third line is called a “signal line”. Common periods of moving averages are: 26 for a slow EMA, 12 for a fast and 9 for a signal line.

![](https://33591944-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MYWZsVZVKQjfWwZjJmj%2F-MZJznKwAFascGHf6Vc1%2F-MZK-62W6pLS3EOOdTck%2FAnalytic%20panels%20-%20Chart%20-Technical%20indicators%20-%20Oscillators%20-%20MACD%20\(Moving%20Average%20Convergence%20Divergence\).png?alt=media\&token=19affe03-4b25-41f0-a616-6d354c66c810)

## Formula <a href="#formula" id="formula"></a>

Fast EMA - Slow EMA

## Most useful cases <a href="#most-useful-cases" id="most-useful-cases"></a>

* **Divergence/Convergence** - Divergence/Convergence pattern is a form of price action when new high(low) on the price scale not confirmed with a new high of MACD. Such price and indicator’s behavior can be interpreted as the weakness of current existing trend.

![](https://gblobscdn.gitbook.com/assets%2F-LD6FsRvQ3jgwJIg6O7r%2F-LEFRI8AOGKOm8LblISj%2F-LEFYgqOaFu04fcJfStC%2FScreenshot_3.png?alt=media\&token=8db3fb43-a11b-475f-a8e7-050e653c6a78)

* **Crossover** - Crossover pattern occurs when MACD value crosses the signal line upward or downward. This signal can be used as a trigger to open buy/sell position.
* **Crossing zero line** - this is a trend reversing signal and it can be very useful in case of determining a correction of existing trend, beginning of a new trend wave or starting a new trend.