MACD is a trading indicator used in technical analysis of stock prices, MACD stands for Moving Average Convergence/Divergence. It's very similar to the price-moving averages, except that it uses three exponential moving averages instead of one or two. The MACD indicator (or “oscillator”) is a collection of three time series calculated from historical price data, most often the closing price. These three series are: the MACD series proper, the “signal” or “average” series, and the “divergence” series which is the difference between the two. The MACD series is the difference between a “fast” (short period) exponential moving average (EMA), and a “slow” (longer period) EMA of the price series. The average series is an EMA of the MACD series itself.