MACD is both a trend indicator and an oscillator: a type of indicator that helps determine the direction of a trend, find price reversal points, and trade on a sideways trend. MACD is short for “moving average convergence/divergence”.
The MACD indicator consists of two indicators – MACD lines and the MACD histogram. MACD lines are more related to trend indicators, while the histogram can be seen as an oscillator.