MACD (Moving Average Convergence Divergence) is a trend-following indicator that shows the relationship between two moving averages of a stock's price. It helps identify changes in the strength, direction, momentum, and duration of a trend. The indicator consists of the MACD line, the signal line, and a histogram, with buy signals generated when the MACD line crosses above the signal line, and sell signals when it crosses below. Traders use MACD to spot potential entry and exit points in the market. It’s a versatile tool for analyzing price momentum and trend changes.