The MACD, or Moving Average Convergence Divergence, is a popular technical analysis indicator used to assess the momentum and potential price direction of an asset. It is calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA, resulting in the MACD line. Additionally, a 9-period EMA of the MACD line is plotted as the signal line, which traders use to identify potential buy or sell signals. When the MACD crosses above the signal line, it may indicate a bullish trend, while a cross below may suggest a bearish trend.