📊 What Is MACD (Moving Average Convergence Divergence)?

MACD is a momentum indicator that shows the relationship between two moving averages of a cryptocurrency’s price. It helps traders spot trend direction, strength, and potential reversals.

🧩 How MACD Works

It calculates the difference between a fast EMA (usually 12 periods) and a slow EMA (usually 26 periods).

This difference is called the MACD line.

Then, a signal line (usually a 9-period EMA of the MACD line) is plotted on top.

The histogram shows the distance between the MACD line and signal line.

🔍 What To Look For

⚡ MACD Line crosses above Signal Line → Buy signal (bullish momentum)

⚡ MACD Line crosses below Signal Line → Sell signal (bearish momentum)

📈 Histogram bars growing → Strengthening trend

📉 Histogram bars shrinking → Weakening trend

🛠️ Why Use MACD?

It helps identify momentum shifts before price changes

Works well to confirm trends and spot potential reversals

Popular among beginners and pros alike

📌 In Short

MACD = A tool that shows momentum and trend changes by comparing two EMAs. Watch the lines and histogram for buy/sell signals!

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