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MACD Indicator Explained — Moving Average Convergence Divergence

The Relative Strength Index (RSI) is a momentum oscillator that measures how fast and how much a crypto price has moved. It is one of the most popular indicators for spotting overbought and oversold conditions.

What MACD measures

MACD (Moving Average Convergence Divergence) shows the relationship between two EMAs — usually the 12 and 26 period. The MACD line is their difference, and a 9-period EMA of that line is the signal line.

How to read the MACD histogram

The histogram is the gap between the MACD line and the signal line. Growing bars mean momentum is accelerating in that direction; shrinking bars mean it is fading.

MACD trading signals

A bullish crossover (MACD crosses above signal) suggests upside momentum; a bearish crossover suggests the opposite. Divergence between MACD and price is a strong reversal warning. Because MACD is lagging, confirm entries with structure or RSI.

MACD settings for crypto

The default 12/26/9 works well on 4h and daily charts. On low timeframes many traders prefer faster settings to reduce lag, but signals get noisier.

What MACD on a live chart — free

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