Everywhere I look I see MACD referred to as a trend following indicator. Yet when I logically look at how MACD is formed, I come to the conclusion that it is a momentum indicator and not a trend indicator. As I understand it MACD is the difference between a short MA and a long MA. The classical momentum indicator (sometimes referred to as ROC) is the difference between the current price and the price of X bars ago. As I figure it, a short average is the equivalent of the current price and a long average is the equivalent of the price X bars ago. So isn't MACD just a fancy momentum indicator?