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What is MACD (Moving Average Convergence Divergence)?
MACD is a trend-following momentum indicator that shows the relationship between two moving averages. A bullish signal occurs when the MACD line crosses above the signal line.
Full Explanation
MACD (Moving Average Convergence Divergence) is calculated by subtracting the 26-period EMA from the 12-period EMA. The result is the MACD line. A 9-period EMA of the MACD (the "signal line") is plotted on top. Key signals: MACD crossing above signal line = bullish; crossing below = bearish. The histogram shows the distance between MACD and signal line. MACD divergence (price makes new high/low but MACD doesn't) often precedes reversals. It's one of the most widely used indicators in crypto trading.
Example
When Bitcoin's MACD crosses above the signal line on the daily chart, it often starts a multi-week uptrend. Fedha Academy's Divergence Detector scans for MACD divergences automatically.
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Last updated: 2026-03-21
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