The Moving Average Convergence Divergence (MACD) is a popular momentum indicator used in technical analysis to identify potential buy and sell signals. It consists of three main components: the MACD line, the signal line, and the histogram. The MACD line is calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA. The signal line is typically a 9-period EMA of the MACD line. Traders often look for crossovers between the MACD line and the signal line, as well as divergence between the MACD and the asset's price, to gauge market momentum and potential trend changes.