Moving Average Convergence Divergence (MACD)
MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price.
Dynamic Chart Demo
* This chart uses synthetic data to demonstrate the indicator's behavior in typical market conditions.
Core Usage
Advantages
- Combines both trend following and momentum in one tool
- Histogram provides visual acceleration/deceleration of momentum
- Signal line crossovers provide clear entry/exit points
Limitations
- Inherently a lagging indicator due to the use of EMAs
- Can fail in volatile but non-trending markets
- Zero-line crossovers often occur after a large move has already started
Calculation Logic
Understanding the mathematical logic behind indicators helps you interpret signals more accurately and avoid misuse in unsuitable market environments.
Common Trading Strategies
Signal Line Crossover
Buy when the MACD line crosses above the signal line; Sell when it crosses below.
MACD Divergence
Look for momentum exhaustion signals when price and MACD disagree.
Best For
「Trend following and momentum identification.」
Note: Technical indicators are mathematical calculations based on historical price and volume. They should be used as part of a comprehensive trading system, not as a standalone entry signal.