MACD — Moving Average Convergence Divergence

Components

• MACD line = EMA 12 − EMA 26.
• Signal line = EMA 9 of the MACD line.
• Histogram = MACD − Signal. Shows the gap visually.

Signals

• Bullish crossover — MACD crosses above the signal line, typically above zero in uptrends.
• Bearish crossover — MACD crosses below the signal line.
• Zero-line cross — MACD goes above/below 0 → trend regime change.
• Histogram expanding / contracting — momentum strengthening / fading.

MACD divergence

Same logic as RSI divergence: price makes a new extreme, MACD doesn't. Reliable warning on higher timeframes, noisy on low ones.