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What is it?
MACD is a momentum indicator that shows the relationship between two EMAs, helping you spot changes in trend strength or direction. It’s like a speedometer for price momentum. How is it used?
  • Crossovers: MACD Line crossing above the Signal Line is a buy signal; crossing below is a sell.
  • Divergence: If price makes new highs/lows but MACD doesn’t, it may signal a reversal.
  • Trend strength: A widening histogram indicates strong momentum.
How is it calculated?
  • MACD Line: 12-period EMA - 26-period EMA.
  • Signal Line: 9-period EMA of the MACD Line.
  • Histogram: MACD Line - Signal Line.
MACD Line = EMA12 - EMA26   Signal Line = EMA9(MACD Line)   Histogram = MACD Line - Signal Line  The above content is designed for informational purposes only, and is explicitly not investment advice. Algo Pilot is a US based technology company and not a bank, broker-dealer, or RIA. As such, Algo Pilot LLC does not provide investment advice and is not a member, SIPC. Brokerage services offered by 3rd parties are not directly affiliated with Algo Pilot LLC, and Algo Pilot users may choose the broker relationship that they desire.
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