Module 4: Technical Analysis
MACD
5 min read
MACD shows the relationship between two EMAs to highlight momentum and trend changes.
Components
The MACD line is the 12-period EMA minus the 26-period EMA. The signal line is a 9-period EMA of the MACD line. The histogram shows the gap between them.
Crossovers and zero-line crosses are common signals, but like all indicators MACD lags and works best alongside price structure.
Key takeaways
- MACD = 12 EMA − 26 EMA.
- Histogram shows momentum strength.
- Combine it with price structure.
Educational content only, not financial advice. Trading forex and CFDs involves significant risk of loss.