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    MACD Indicator: Spotting Trend Reversals

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    MACD Indicator: Spotting Trend Reversals

    MACD (Moving Average Convergence Divergence) is a trend-following momentum indicator. It shows the relationship between two moving averages of a price.

    Components

    1. MACD Line: Difference between 12-period EMA and 26-period EMA.
    2. Signal Line: 9-period EMA of the MACD Line.
    3. Histogram: MACD Line - Signal Line.

    The Crossover Strategy

    • Bullish: MACD crosses above the Signal line.
    • Bearish: MACD crosses below the Signal line.

    Verify your chart readings with the MACD Calculator.

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    Try our official MACD Indicator to run the numbers yourself and optimize your portfolio.

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