MACD

What is MACD?

Moving Average Convergence Divergence shows the relationship between two EMAs. It includes a MACD line, signal line, and histogram.

Components

• MACD: EMA(12) - EMA(26)
• Signal: 9-period EMA of MACD
• Histogram: MACD minus Signal line

Interpretation

• Bullish: MACD crosses above Signal
• Bearish: MACD crosses below Signal
• Divergence: MACD vs price divergence warns of reversal

Trading Signals

• Buy: MACD crosses above Signal line
• Sell: MACD crosses below Signal line
• Zero line crossover confirms trend direction

Price Overlay

• Toggle: Show/hide close price line (right axis)
• MACD histogram shrinking while price trends = weakening
• Price new high + MACD lower high = bearish divergence