MACDMoving Average Convergence Divergence

MACD plots the difference between a fast EMA (12) and slow EMA (26), with a 9-period EMA of that difference as the signal line. The histogram visualizes momentum: bars above zero = bullish momentum, below zero = bearish.

The classic MACD trade: bullish signal line cross above zero in a confirmed uptrend = entry; histogram contracting from positive to negative warns of momentum loss. MACD is best as a confluence filter on top of price-action strategies, never as a standalone signal.