MACD is a momentum oscillator that shows the difference between two exponential moving averages. It can be used to trade trends, identify divergence, and signal crossovers. Learn how to calculate and use MACD with Fidelity. MACD is a momentum indicator, which follows trends and belongs to the oscillator family of technical indicators. It permits you to: According to the relationship between two moving averages, determine the current trend direction (bullish or bearish) and forecast where the price is more likely to go. MACD is a momentum indicator that shows the relationship between two EMAs of a stock price. Learn how to calculate, read and use MACD for day trading, swing trading and scalping with different settings and examples. The moving average convergence divergence is a technical indicator used to assess the power of price movement in a market.