Technical analysis · Intermediate

MACD: Moving Average Convergence Divergence

A 1-minute lesson from the MarketPro academy, one of 26 in technical analysis.

Last reviewed 15 September 2026 by the MarketPro research desk · Editorial policy

Short answer

The Moving Average Convergence Divergence (MACD) is a momentum indicator that shows the relationship between two exponential moving averages of price, helping traders gauge the strength and direction of a trend. The indicator is built from three parts: the MACD line (the difference between a faster and a slower EMA, commonly 12 and 26 periods), a signal line (an EMA of the MACD line itself, often 9 periods), and a histogram that plots the gap between the two lines.

The indicator is built from three parts: the MACD line (the difference between a faster and a slower EMA, commonly 12 and 26 periods), a signal line (an EMA of the MACD line itself, often 9 periods), and a histogram that plots the gap between the two lines.

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Crossovers: When the MACD line crosses above the signal line it suggests upward momentum is building; a cross below suggests downward momentum.
Zero line: A MACD line above zero indicates the shorter average is above the longer one, broadly favoring buyers; below zero favors sellers.
Histogram: A shrinking histogram can hint that existing momentum is fading before a crossover actually occurs.

MACD is a lagging tool because it is derived from moving averages, so signals tend to confirm a move rather than predict it. It works best combined with price structure or volume rather than in isolation, and like any single indicator it can produce false signals in choppy, range-bound markets.

Lesson 9 of 26 in Technical analysis

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Written and reviewed by the MarketPro research desk

MarketPro is a trading-signal and trading-education app operated by Harajuku Holdings LTD (Cyprus). Our signal desk publishes and tracks every trade idea in-app, and every page here is checked against the app's live behaviour before publishing. Last reviewed 15 September 2026. How we produce signals and content · About MarketPro

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