// Definition
MACD is a momentum indicator built from the difference between two exponential moving averages, plotted with a signal line and a histogram.
Explained simply
The standard settings use a 12-period and a 26-period EMA, with a 9-period signal line. When the MACD line crosses above the signal line, momentum is turning up; crossing below means momentum is turning down.
The histogram shows the gap between the two lines, making it easy to see momentum growing or fading.
Tip
MACD crossovers in a sideways market produce many false signals. They work best in trending conditions.
For education only, not financial advice. Trading is risky and you can lose money.