MACD (Moving Average Convergence/Divergence) was created by Gerald Appel in the late 1970s. It measures the difference between two moving averages and helps to reveal momentum trends.

For Elliott wave traders, MACD is often used as a supporting indicator. For example, during 5th waves Elliott wave traders are on the lookout for a reversal opportunity. Divergence in price and momentum as measured by MACD can add evidence that a wave structure is nearing completion. This helps the Elliott wave traders time their entries and exits, plus manage risk.

Jeffrey Kennedy teaches Elliott wave traders how to use MACD to strengthen their confidence levels.