📈 MACD – Moving Average Convergence Divergence
MACD is a momentum + trend-following indicator. It helps spot trend changes and market momentum — very useful in both bull and bear markets.
🧠 Simple Definition
MACD tracks the relationship between two moving averages of price:
A fast-moving average (usually EMA 12)
A slow-moving average (usually EMA 26)
MACD turns this into lines and a histogram that show if the momentum is growing or fading.
📊 What You See on a MACD Chart
1️⃣ MACD Line → difference between EMA-12 and EMA-26 2️⃣ Signal Line → EMA-9 of the MACD line 3️⃣ Histogram → shows the distance between MACD Line & Signal Line
🔍 How to Read It
MACD Line crosses above Signal Line → Bullish crossover → Buy signal
MACD Line crosses below Signal Line → Bearish crossover → Sell signal
Histogram grows bigger → Momentum is strengthening
Histogram shrinks → Momentum is weakening
📈 Visual Example (Suggested Visual)
📊 Why MACD is Powerful
✅ Combines trend and momentum ✅ Works well on all timeframes ✅ Helps confirm signals from other indicators (like RSI or EMAs)
🤖 How Mandalyze AI Uses MACD
Mandalyze AI detects:
MACD crossovers
Momentum buildup (rising histogram)
Momentum fading (shrinking histogram)
Bullish or bearish divergence with price
Example output:
“ETH MACD bullish crossover detected on 4h chart — growing momentum.”
⚠️ Pro Tips
Don’t trade just one crossover — combine with trendlines or support/resistance.
Strong trends may keep MACD bullish/bearish for extended periods — don't fight the trend!
🧪 In Summary
MACD helps you see how strong a trend is — and whether momentum is about to shift.
📌 Master MACD + RSI combo = powerful edge for any trader.
🧭 Next Lesson: Bollinger Bands – Volatility & Mean Reversion
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