MACD
Difference between 2 EMAs (12 and 26), with signal and histogram. Trend + momentum tool.
Continuation
Difficulty: ●●○○○
Reliability: 6/10
3 components:
- MACD line = EMA(12) − EMA(26)
- Signal line = EMA(9) of MACD line
- Histogram = MACD − Signal
Signals
- MACD/Signal cross: bullish if MACD crosses above, bearish if below
- Zero cross: trend change
- Divergences price vs MACD → like RSI
Histogram
Reflects momentum acceleration. Shrinking histogram while price advances = momentum fading.
When to look
Trend-following, more useful in trends than ranges.
Confirmation
Combine cross + zone (above or below zero).