---
title: macd
description: This page explains the Moving Average Convergence Divergence (MACD),
  a tool used in technical analysis to signal trend changes. By explaining the behaviour
  of MACD under various conditions, understanding its usage, and highlighting its
  parameters, it assists in generating buy and sell signals.
keywords:
- MACD
- Moving Average Convergence Divergence
- Exponential Moving Averages
- Trend changes
- Buy signal
- Sell signal
- Overbought conditions
- Oversold conditions
---

import HeadTitle from '@site/src/components/General/HeadTitle.tsx';

<HeadTitle title="stocks/ta/macd - Reference | OpenBB Terminal Docs" />

The Moving Average Convergence Divergence (MACD) is the difference between two Exponential Moving Averages. The Signal line is an Exponential Moving Average of the MACD. The MACD signals trend changes and indicates the start of new trend direction. High values indicate overbought conditions, low values indicate oversold conditions. Divergence with the price indicates an end to the current trend, especially if the MACD is at extreme high or low values. When the MACD line crosses above the signal line a buy signal is generated. When the MACD crosses below the signal line a sell signal is generated. To confirm the signal, the MACD should be above zero for a buy, and below zero for a sell.

### Usage

```python
macd [--fast N_FAST] [--slow N_SLOW] [--signal N_SIGNAL]
```

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## Parameters

| Name | Description | Default | Optional | Choices |
| ---- | ----------- | ------- | -------- | ------- |
| n_fast | The short period. | 12 | True | None |
| n_slow | The long period. | 26 | True | None |
| n_signal | The signal period. | 9 | True | None |

![macd](https://user-images.githubusercontent.com/46355364/154311220-d18eb93e-76b3-4abb-b9c6-86484f462c55.png)

---