# What Is Moving Average Convergence-Divergence (MACD)?

Moving Average Convergence-Divergence (MACD) is an efficient, compact way to compare averages of a metric over two different intervals, and determine if the metric is trending upwards or downwards. It is widely used in finance and several other fields.

MACD is a terrible name for a simple concept. It simply subtracts the long-term (distant) average from the short-term (recent) average. If the short-term average is larger, the result is positive and the metric is trending upwards.