Moving Average Convergence/Divergence (MACD)

What is MACD Indicator and how it is used?

The technical indicator MACD (Moving Average Convergence Divergence) - refers to the group of oscillators. To construct the MACD graph, two exponential moving averages (EMA) are used: "fast" (with a period of 12) and "slow" (with a period of 26).

MACD is the difference between the 12-period and 26-period exponential moving averages (EMA), and the result will be displayed in the form of bars (histograms), which are the main MACD line. Standard MACD indicators have one additional line, called "signal", which is a simple moving average with a period of 9, by default.

The movement in the direction of the zero value of the bars on the histogram is called convergence. The opposite phenomenon, when the bars of the histogram grow, and with them the distance between the 12-period and 26-period EMA, is called divergence. Hence the name of the technical indicator is MACD - Moving Average Convergence Divergence.

Moreover, the greater the divergence of the curves, i.e. the longer the bars, the more pronounced the trend. Therefore, if after crossing the curves start to divergence strongly, then this indicates the formation of a new trend and can be considered as a trading signal to buy or sell, depending on the direction of the trend movement (bullish or bearish).

Overbought-oversold state

MACD is also very valuable, as an indicator of overbought-oversold. When the "fast" moving average rises (falls) significantly higher (lower) "slow" (ie MACD bars grow in the positive or negative sides), this means that the price is likely too high and will soon return to a more realistic level.

MACD Simple Signals

  • Signal to buy appears when MACD crosses zero line from bottom to top
  • Signal to sell appears when MACD crosses zero line from top to bottom
  • If the MACD bars and Signal Line are above the zero line and the histogram crosses the signal line from bottom to top, this is the signal to buy
  • If the MACD bars and Signal Line are below the zero line and the histogram crosses the signal line from bottom to top, this is the signal to buy
  • If the MACD bars and Signal Line are above the zero line and the histogram crosses the signal line from top to bottom, this is the signal to sell
  • If the MACD bars and Signal Line are below the zero line and the histogram crosses the signal line from top to bottom, this is the signal to sell

MACD Strong Signals - Divergence

When there is a divergence between the MACD and the price, this indicates a probability of an early end of the current trend.

Bullish divergence occurs when the new price maximum is not confirmed by a new maximum of the indicator, i.e. the next peak of the price is higher than the previous one, and the next peak of the MACD bars is lower than the previous one. In other words, a bullish divergence occurs when the MACD histogram forms new highs, and the price fails to form them. This is a direct evidence of the weakness of the bullish trend. A divergence usually comes with a correction, less often a trend reversal.

Bearish divergence is formed when the new minimum price is not confirmed by a new minimum indicator, i.e. the next value of the price is lower than the previous one, and the next value of the indicator is higher than the previous one. In other words, the bearish divergence is the situation when the histogram forms new lows, and the price does not manage to form them. Bearish discrepancy indicates a weakness in the bearish trend. Divergences in overbought and oversold areas are considered to be the strongest and most significant signals.

Like all technical analysis indicators, which are based on moving averages, MACD is no exception and also delays the signals. However, despite this, it is one of the most frequently used indicators in the technical analysis of the currency market.

Currency
Timeframe
Timeframe Value
Moving Average Method
CryptoCoinRankings Private Signals
@CryptoCoinRankings
Load more
2019-12-06 03:44
Some huge long activity
2019-12-16 01:29
2019-12-17 14:06
Bitcoin to 100 k road map
2019-12-26 05:20
Bored with Bitcoin getting stuck at 7k for months? Check out live betting bot that you can use to grab quick winners on soccer https://zcodesystem.com/livebettingbot/
2020-01-04 15:51
Bitcoin Price Will Hit $400,000 after May's Halving The $268.93 leap was an increase of 13,000 percent. Years after, in July 2016, Bitcoin had its second halving. This halving pushed the Bitcoin price from $164.01 all the way to a mouth-watering $20,074. The increase, this time, was 12,000 percent. As the Bitcoin halving is expected in May, the king coin’s price has been predicted to hit $400,000 after the event. These forecasts are based on the history of BTC halvings. When there’s a shortage in the supply of anything, its value usually increases. This is the best way to explain why Bitcoin’s price always skyrockets after a halving. But is $400,000 possible or is it just a bullish pipedream?
2020-01-23 16:33
Will Bitcoin Halving boost the price? What do you expect guys?
public poll

Bitcoin Price Will Hit $400,000 👍👍👍
▫️ 0%

BTC will reach at least $20,000 👍👍
▫️ 0%

BTC will double in price, reaching 16k at best 👍
▫️ 0%

The price will not change, it will stay around 8-10k 🧐
▫️ 0%

The price will collapse to 5-6k or lower 🥺🤯
▫️ 0%

👥 Nobody voted so far.
2020-01-23 16:36
Here is how halving increased the price in the past.
2020-01-23 16:47
​Coin Alert! Coin Alert! Coin Alert! SAPPHIRE (SAPP) 🚀

Sapphire (SAPP) has a new developer team. Since the takeover beginning of January the coin 12xed in value already. Team is dedicated and very responsive, working on use cases and consisting also of burned marketers who HATE ICOs and what they did to crypto. This is a Masternode coin so you can setup your own servers and make money without having to rely on 3rd party! (aprox 250% yearly to return according to latest stats!)

How to get into SAPP and masternoding?
Join the Community and get the full guide here: https://discord.gg/k7gk6J
Download Wallet and check the Coins Website here: http://www.sappcoin.com
Check masternode coins and volumes here: https://masternodes.online/
See the SAPP Volume and buy Sapp tokens here: https://crex24.com/de/exchange/SAPP-BTC
Sapp has just been recognized as 2nd best masternode earning coin of the week! Read the article here: https://masternode.buzz/best-performing-masternodes-week3-2/
2020-01-24 04:39
SAPPHIRE (SAPP) The Underdog coin!

We are pretty hyped to see all the progress SAPP(Sapphire) has made. Now featuring Amazon Vouchers and a lot of features to come to increase its value. Especially the community is great. Join the discord and learn how to masternode your own SAPP Coins to make healthy profits!

https://discord.gg/yKpWkr
2020-02-11 13:50
X
Hey!
Subscribe to us in Telegram
Here only the most impotant
Data Saved Successfully