The MACD, or Moving Average Convergence Divergence, is a popular technical analysis tool used in financial markets to identify potential buy and sell signals. It consists of two moving averages: the 12-day exponential moving average (EMA) and the 26-day EMA. The difference between these two averages creates the MACD line, which traders analyze alongside a signal line, typically a 9-day EMA of the MACD line. Traders look for crossovers between the MACD line and the signal line to make decisions. When the MACD line crosses above the signal line, it may indicate a buying opportunity, while a crossover below may suggest a selling opportunity. Additionally, the distance between the two lines can indicate the strength of a trend.