All about the MACD indicator

MACD (Moving Average Convergence Divergence) is an indicator that helps determine the strength, direction and possible reversal of a trend. It is based on the difference between two exponential moving averages (EMA) with different periods.

How to use MACD:
▪️ MACD crossing above the signal line is a bullish signal (potential growth).
▪️ MACD crossing below the signal line is a bearish signal (possible decline).
▪️ MACD above zero confirms an uptrend.
▪️ MACD below zero confirms a downtrend.

🧐 Application strategies:

🔹 MACD and signal line intersections — a classic strategy.
 Suitable for entering at the beginning of a trend, but may lag.

🔹 MACD divergence:
- Bullish divergence: the price updates the minimum, MACD — no → growth is possible.
- Bearish divergence: the price updates the maximum, MACD — no → signal to decline.

🔹 MACD histogram helps to visually determine the acceleration or deceleration of the trend.