MACD Complete Guide
Moving Average Convergence Divergence
What is MACD?
The Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator developed by Gerald Appel in the late 1970s. It shows the relationship between two exponential moving averages (EMAs) of a security's price. The MACD line is calculated by subtracting the 26-period EMA from the 12-period EMA. A 9-period EMA of the MACD line, called the signal line, is then plotted on top. The histogram represents the difference between the MACD line and the signal line. Traders use MACD crossovers, divergences, and rapid rises/falls to identify potential buy and sell signals. It is one of the most widely used technical indicators across all markets.
Formula
Signal Types
Golden Cross
MACD histogram crosses above zero — bullish momentum shift
Death Cross
MACD histogram crosses below zero — bearish momentum shift
Bullish Divergence
Price makes lower low while MACD makes higher low — potential reversal
Related Indicators
FAQ
What are the default MACD settings?
The standard settings are 12, 26, 9 — representing the fast EMA period, slow EMA period, and signal line period respectively.
How do I read a MACD golden cross?
A golden cross occurs when the MACD line crosses above the signal line (histogram turns positive). It suggests bullish momentum is building.
Is MACD a leading or lagging indicator?
MACD is a lagging indicator because it is based on moving averages. However, the histogram can provide early signals of momentum shifts.
Parts of this page (FAQ, introductions) are AI-assisted. Core data and statistics are algorithmically computed. All pattern definitions are human-reviewed.
Disclaimer: This page is based on publicly available market data and algorithmically generated technical analysis. It does not constitute investment advice. Historical pattern statistics do not guarantee future performance. Invest at your own risk.
Data source: EODHD · © 2026 KlineVision AI