Signal line cross up
The textbook MACD long trigger, filtered for quality by the zero-line regime.
Moving Average Convergence Divergence
A trend-momentum indicator built from the difference between two EMAs, plus a signal line and histogram that visualise momentum shifts.
MACD is the difference between a fast EMA (default 12) and a slow EMA (default 26). A third EMA of that difference (default 9) becomes the signal line, and the gap between MACD and signal is plotted as a histogram.
The three classic reading lenses are: the MACD/signal cross (momentum shift), the zero-line position (regime: above zero bullish, below zero bearish), and the histogram slope (acceleration or deceleration of momentum). MACD behaves poorly in choppy markets because the EMAs whip around — pair it with a regime filter for usable results.
How to get in
The textbook MACD long trigger, filtered for quality by the zero-line regime.
A slower regime-change long that catches larger, cleaner trends with fewer false starts.
An aggressive early-entry long that buys the first sign of momentum reclamation.
How to get out
A symmetrical momentum-flip exit that mirrors the classic MACD entry trigger.
A patient exit that lets winners run until the whole trend regime flips.
An early exit that locks gains when momentum starts fading at the top.
Other things it's good for
A cheap bias filter that keeps any directional system on the right side of the prevailing trend.
A higher-timeframe trend filter that keeps entries aligned with the daily MACD regime.