This technical analysis guide explains what the moving average convergence divergence indicator (MACD) is, and how traders use it to exercise trading strategies.

Dec 10, 2025 · Now that we have identified what the names represent, we can decipher how to read MACD and what the moving average convergence divergence signals are made of. As a result, the …

Dec 15, 2025 · Moving average convergence/divergence (MACD) is a technical indicator that helps investors identify price trends, measure trend momentum, and identify entry points for buying or …

Aug 4, 2025 · If you are considering using this traditional charting tool to make stock decisions, here are some common steps to help you read the MACD. Understand the basic setup. Most MACD …

First, MACD employs two Moving Averages of varying lengths (which are lagging indicators) to identify trend direction and duration.

Jul 1, 2021 · Another way of displaying the MACD, in histogram format, is much easier on the eye. In this figure, each bar in the histogram represents the difference between the two moving averages on …

I recommend you study some charts with EMAs, the corresponding MACD lines, and enough price action to see how things mesh. Remember, it’s easy to get caught up in technical indicators only to …

Apr 9, 2025 · Understand what the MACD indicator shows, how to read convergence and divergence, and how it can help interpret market momentum.

Oct 20, 2025 · By default, the MACD line is calculated using 12- and 26-period EMAs, the signal line is a 9-period EMA, and the histogram equals the MACD minus the signal line, illustrating the balance …

Using the MACD effectively involves understanding its components, recognizing their relationships, and interpreting signals within the bigger market picture. This allows you to use the MACD as a strong …