TrendExpert Curated · Playbook

MACD

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

Entry ideas

03ideas
01Entry idea

Signal line cross up

The textbook MACD long trigger, filtered for quality by the zero-line regime.

02Entry idea

Zero-line cross

A slower regime-change long that catches larger, cleaner trends with fewer false starts.

03Entry idea

Histogram early reversal

An aggressive early-entry long that buys the first sign of momentum reclamation.

How to get out

Exit ideas

03ideas
01Exit idea

Signal line cross down

A symmetrical momentum-flip exit that mirrors the classic MACD entry trigger.

02Exit idea

Zero-line cross exit

A patient exit that lets winners run until the whole trend regime flips.

03Exit idea

Histogram peak exit

An early exit that locks gains when momentum starts fading at the top.

Other things it's good for

Utilities

02ideas
01Utility

Trend-regime filter

A cheap bias filter that keeps any directional system on the right side of the prevailing trend.

02Utility

Higher-timeframe bias

A higher-timeframe trend filter that keeps entries aligned with the daily MACD regime.

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