Technical indicators · Chapter 18 of 31
What is MACD?
A trend and momentum indicator built from two moving averages, and how its crossovers and histogram read.
MACD, short for Moving Average Convergence Divergence, tracks the relationship between two moving averages of price. A signal line and a histogram are drawn on top to highlight shifts.
The crossover
When the MACD line crosses above its signal line, momentum is turning up; crossing below turns it down. These crossovers are the most-watched part of the indicator.
The histogram
The histogram is the gap between the two lines. A growing histogram means momentum is accelerating; a shrinking one means it is fading, often before the lines actually cross.
Set an alert
You can set a MACD alert to catch a crossover on an instrument you follow, without watching the chart. This is available on the free plan.
Now watch this signal update in real time across the market.
See it liveEducational content, not financial advice.