What is MACD (Moving Average Convergence Divergence)?
A trend-following momentum indicator built from the gap between a fast (12-day) and slow (26-day) EMA, tracked against its own 9-day signal line.
Formula
How to Interpret
The MACD line crossing above its signal line is a bullish momentum signal; crossing below, bearish. Crossing the zero line marks the fast average overtaking the slow one β a trend-side change. The histogram visualizes momentum building or fading before a crossover completes. Built entirely from moving averages, so signals confirm moves more than predict them.
Typical Ranges
Values are price-scaled, so raw MACD levels aren't comparable across assets β only crossovers, zero-line position and histogram shape are. Prone to whipsaws in range-bound markets.
Find Stocks Using This Signal
Screen US and Indian stocks by MACD in the Technical Screener.