MACD is a trend-following momentum indicator that shows the relationship between two moving averages of prices.
The MACD Line is computed by subtracting the 26-day exponential moving average of the closing price from the 12-day exponential moving average of the closing price.
The MACD Signal Line is simply the 9-day exponential moving average of the MACD Line.
When the MACD Line falls below the MACD Signal Line, it is a bearish signal, which indicates that it may be time to sell.
Conversely, when the MACD Line rises above the MACD Signal Line, the indicator gives a bullish signal, which suggests that the price is likely to experience upward momentum.
