MACD

MACD tracks momentum through the difference between two EMAs. Learn how the histogram signals accelerating momentum and how to read MACD crossovers.

What is MACD?

MACD (Moving Average Convergence Divergence) tracks momentum through the difference between two EMAs (typically 12 and 26 periods). The MACD histogram measures the gap between the MACD line and its signal line; positive histogram values indicate accelerating bullish momentum, negative indicate accelerating bearish momentum.

How Traders Use MACD

  • Histogram positive: momentum is accelerating to the upside.
  • Bullish crossover: MACD line crossing above the signal line.
  • Centerline crossover: MACD crossing above zero signals a trend shift.
  • MACD divergence: histogram weakening while price still rises = momentum exhaustion warning.

Where We Use MACD in Our Penny Stock Scans

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