Traders View Non-AMP

A Short and Exclusive Guide on MACD Indicator

Published by
Qadir AK

Moving Average Convergence/Diversion (MACD) Indicator

MACD is used to identify the over trend of an asset and most notably the momentum and Bearish Divergence creates a selling opportunity while Bullish Divergence creates a buying opportunity trend duration. MACD is very informative due to the reason that it makes use of two indicators.

First, MACD employs two Moving Averages of varying lengths (which are lagging indicators) to identify trend direction and duration. Then, MACD takes the difference in values between those two Moving Averages (MACD Line) and an EMA of those Moving Averages (Signal Line) and plots that difference between the two lines as a histogram which oscillates above and below a center Zero Line.

The histogram is used as a good indication of a security’s momentum.

MACD has three major components:

  • The MACD line obtained by subtracting the long-term EMA from the Short-term EMA.
  • The Signal line is the EMA of the MACD line.
  • The MACD histogram is a result of the difference between the MACD line and the signal line.
  • The difference between those two lines oscillates around the zero line.

What to Look for?

  1. Signal Line Crossovers:

Signal line crossovers are of two types, Bullish and Bearish.

  • If the MACD line crosses over the signal line towards the top, it is a bullish crossover.
  • If the MACD line crosses over the signal line to the bottom, it is a bearish crossover.

2. Zero Line Crossovers:

When the MACD line crosses over the zero line, i.e., when it moves from positive to negative, it is a bullish crossover.

It is a bearish crossover if the MACD line crosses the zero line over to the negative from the positive side.

3. Divergence:

When the price records low, however, the MACD records higher, a bullish divergence occurs.

Moreover, the opposite is true for a bearish divergence.

You can Contact us for Exchange Listing, Blockchain Events, Wallets, Tracking Tool info. Have a look at our blockchain partners here.

Trust with CoinPedia:

CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.

Investment Disclaimer:

All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.

Sponsored and Advertisements:

Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

Recent Posts

Kalshi Wins as Federal Court Blocks Arizona Crackdown Until 24th April

A federal judge in Arizona temporarily blocked the state from enforcing gambling laws against Kalshi,…

April 11, 2026

No, Bitcoin Has Not Bottomed Yet: Analyst Who Called the Top Explains Why

Bitcoin just had its best week in a while. The ceasefire rally, the CPI relief,…

April 11, 2026

The U.S Moves $177K in Bitcoin, But the Real Story Is Bigger

The U.S. government just moved over 2 BTC to a Coinbase Prime wallet, but the…

April 11, 2026

Bhutan Cuts Bitcoin Holdings by 70% Over 18 Months

Bhutan has sold about 70% of its Bitcoin holdings over the past 18 months, with…

April 11, 2026

Trump Says Iran-US Deal Is 99% About One Thing: What That Means for Bitcoin

An extremely consequential diplomatic meeting is hours away. Iran's 71-person team, led by Parliament Speaker…

April 11, 2026

Grayscale Is Accumulating These Altcoins in Q2 2026

Grayscale Investments has released its Q2 2026 “Assets Under Consideration” list, highlighting a clear shift…

April 11, 2026