Moving Average Convergence and Divergence (MACD) is an indicator in the field of technology that measures the divergence and convergence that occurs in the moving average. If you’ve read our post on Moving Averages, you’ll recognize these terms.

The moving average Convergence and Divergence (MACD) is known as MACD from now on. The purpose of this article is to clarify the MACD in order to make it easier for you to understand and use it.

How MACD is calculated

In subtracting the 26-period, exponential moving average (EMA) from the 12-period EMA and that is how the MACD can be calculated. A “signal line” which is a 9-day EMA that is part of the MACD is then positioned over it. MACD line, which could be used as a trigger to buying and selling signals.


Macd indicator macd indicators are constructed on the basis of 26 and 12-period moving averages. The options aren’t modified, so it’s better to let them be. Be aware that the indicators are most effective with a majority of users having the same signal. This is why it is recommended to keep the bitcoin MACD cryptocurrency settings between 12 and 26 all the time.

HOW to use MACD

If the MACD crosses over the line of zero, you can buy and close a short position; If it crosses below the zero line, sell or close a long position. MACD falls below its zero point, close or sell the position. Due to the delay that this method employs, it must be employed with caution in rapidly volatile markets, where signals can be sent too late.


The indicator is considered positive when the Macd line is crossed between the lines of signal and below. The signal gets stronger as it falls to below zero. The indicator is considered negative when the MACD line runs between the two lines. The signal is stronger when it crosses over the line of zero.

How to use MACD Indicator

The indicator is believed to be positive when the MACD line crosses it from underneath. The stronger the signal the more it falls below zero. The indicator is considered to be bearish when the MACD line runs between above and lower than the sign line. The signal becomes stronger as it crosses to the line of zero.


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