What does the MACD indicator mean?

The MACD (Moving Average Convergence Divergence) is an indicator that helps you identify the trend direction and its strength.

It consists of two lines:

The fast line (MACD Line)

The slow line (Signal Line)

When the fast line crosses the slow line from below to above → Signal of a potential rise

When the fast line crosses the slow line from above to below → Signal of a potential drop

This indicator is powerful if you combine it with support and resistance levels or trading volume.