MACD

Moving Average Convergence Divergence momentum.

What is MACD?

Moving Average Convergence Divergence measures momentum by comparing two EMAs (12 and 26 period). The Signal line (9-period EMA of MACD) provides crossover signals. The Histogram shows momentum strength.

Parameters (12,26,9)

  • MACD line (solid): EMA-12 minus EMA-26
  • Signal line (dashed): 9-period EMA of MACD
  • Histogram (tooltip): MACD minus Signal (momentum strength)

Interpretation

  • Above zero: Bullish momentum — uptrend bias
  • Below zero: Bearish momentum — downtrend bias
  • MACD crossing Signal = momentum shift
  • Data refreshes periodically — not real-time

Trading Signals

  • Buy: MACD crosses above Signal line
  • Sell: MACD crosses below Signal line
  • Zero-line crossover confirms trend direction
  • Histogram shrinking = momentum fading ahead of a cross

Price Overlay

  • Close Price: Daily closing price (right Y-axis)
  • MACD divergence from price = weakening momentum
  • MACD crossover + price breakout = strong signal
  • Histogram shrinking + price extending = momentum fading

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