MACD Guide

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MACD: The moving average convergence divergence (MACD) is a type of oscillating indicator that can help traders quickly spot increasing short-term momentum.

An oscillating indicator is a technical analysis indicator that varies over time within a band (above and below a centreline; the MACD fluctuates above and below zero. It is both a trend-following and momentum indicator.

One basic MACD strategy is to look at which side of zero the MACD lines are on in the histogram. If the MACD lines are above zero for a sustained period of time, the stock is likely trending upwards. Conversely, if the MACD lines are below zero for a sustained period of time, the trend is likely down. Using this strategy, potential buy signals occur when the MACD moves above zero, and potential sell signals when it crosses below zero.

Signal line crossovers can also provide additional buy and sell signals. A MACD has two lines—a fast line and a slow line. A buy signal occurs when the fast line crosses through and above the slow line. A sell signal occurs when the fast line crosses through and below the slow line.

Time interval: Candlestick or bar Timeframe

MACD: Oscillating Trading Indicator

Index: Choose one of the three components of the MACD indicator – MACD Line, Signal Line or MACD Histogram.


1.Range: MACD component value range.

2.Position: The position of one component in relation to the other.

Effect:  Select one of the “Between, Out of range, Higher than, Lower than” when selecting “Range method” and enter designated values.

 Select one of the “ Higher than or Lower than” when selecting “Position method” and select second index. The second index is the second component of MACD indicator. The first index functions –Higher than or Lower than– in coordination with Second index.

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