Indicators

MACD

Also called: moving average convergence divergence

A trend-and-momentum indicator built from two moving averages, with a signal line and histogram that highlight shifts in momentum.

MACD is the difference between a fast and a slow exponential moving average (classically 12 and 26 period). A 9-period 'signal line' is plotted on top; the histogram is the gap between the two.

A bullish cue is the MACD line crossing above the signal line (and the histogram flipping positive); a bearish cue is the reverse. Like RSI, MACD divergence from price can warn of a weakening move.

On StockSetups

StockSetups computes MACD on every signal and exposes MACD crosses (with days-since) and MACD divergence as screener fields, so you can filter for fresh momentum shifts.

Related terms

RSI (Relative Strength Index)Moving AverageADX (Average Directional Index)

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