#MACD The MACD (Moving Average Convergence Divergence) indicator is a popular tool used in cryptocurrency trading to analyze price Trends & Momentum.
How MACD Works MACD Line: This is calculated by subtracting the 26-Period Exponential Moving Average (EMA) from the 12-Period EMA.
Signal Line: A 9-Period EMA of the MACD line, which acts as a trigger for buy and sell signals.
Histogram: This represents the difference between the MACD line and the Signal Line. It helps visualize the "Strength and Direction" of the Trend.
Key Signals Signal Line Crossover: When the MACD line crosses above the Signal Line, it is considered a Bullish Signal (suggesting a Buy). Conversely, when it crosses below, it is a Bearish Signal (suggesting a Sell)
Zero Line Crossover: When the MACD line crosses above the Zero Line, it indicates a Bullish Trend. When it crosses below, it indicates a Bearish Trend.
Divergences: When the price of The Cryptocurrency and the MACD line move in Opposite Directions, it can signal a Potential Reversal.