MACD (Moving Average Convergence Divergence)
Built from two moving averages, this indicator tracks the shifting gap between short- and long-term momentum.
Gerald Appel built MACD in the late 1970s. It subtracts a 26-period exponential moving average from a 12-period one. A nine-period average of that line, called the signal, sits on top, and the gap between them prints as a histogram.
When the MACD line crosses above the signal line, momentum is turning up; a cross below points down. The histogram shows how fast. On crypto's 24/7 charts, MACD whipsaws badly in sideways markets, firing crossovers that lead nowhere.
Related terms
A momentum oscillator scaled 0 to 100 that gauges whether an asset has run too hot or too cold.
Moving Average (MA)A line that averages price over a set period, smoothing noise to reveal the underlying trend.
Golden CrossA bullish chart signal that fires when a faster moving average climbs above a slower one.
Bollinger BandsThree lines that wrap price action, widening when volatility rises and pinching tight when markets go quiet.