It is an oscillator, but it is also known as a trend indicator or even a "trend oscillator." MACD is calculated using two moving average indicators and then applied directly to the chart (they are not displayed in the MACD chart, only their readings are used). It is displayed in a separate window beneath the graphic. A histogram with an auxiliary line The divergence between two moving averages is depicted using a histogram. When the moving averages move away from each other, the bars on the histogram lengthen; when they move closer together, the bars shorten. Rapid movements are represented by long bars in the MACD histogram, while flat movements are represented by short bars.

The Moving Average Convergence Divergence (MACD) is a popular technical analysis indicator with several principles and characteristics. It consists of two moving averages fast and slow and a signal line. MACD measures the convergence and divergence between these moving averages, providing insights into trend strength and potential reversals. Its principles include identifying bullish and bearish signals, detecting momentum shifts, and confirming price trends. Characteristics of MACD include its sensitivity to price movements, its ability to generate buy/sell signals when crossing the signal line, and its effectiveness in analyzing both short-term and long-term trends. MACD is a versatile tool used by traders to make informed trading decisions in various market conditions.