Moving Average Convergence Divergence (MACD)
MACD: fast EMA minus slow EMA, its signal line and the histogram between them, a trend-following momentum indicator.
How to read it
- MACD crossing above the signal line is bullish, below it bearish.
- The histogram shows the gap between MACD and signal; shrinking bars mean momentum is fading.
- Crosses of the zero line show the fast EMA moving above or below the slow EMA.
Key settings
- Fast 12, slow 26, signal 9, source close.
Good to know
- Drawn in its own pane below the chart.