What is MACD?

MACD (Moving Average Convergence Divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of a security's price. Developed by Gerald Appel, MACD is one of the most popular and reliable technical indicators used by traders.

Our ticker screener automatically analyzes MACD signals for every stock and incorporates them into the overall trading score to identify the best swing trade opportunities. Learn more about RSI analysisand technical analysis fundamentals.

MACD Components

MACD Line

The MACD line is calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA. This line represents the difference between the two moving averages.

Signal Line

The signal line is a 9-period EMA of the MACD line. It acts as a trigger for buy and sell signals.

Histogram

The histogram represents the difference between the MACD line and the signal line. It helps visualize the momentum and strength of the trend.

MACD Formula

MACD Line = 12-period EMA - 26-period EMA
Signal Line = 9-period EMA of MACD Line
Histogram = MACD Line - Signal Line

MACD Trading Signals

Bullish Signals

• MACD Line crosses above Signal Line: Buy signal indicating upward momentum
• MACD Line above zero: Bullish trend confirmation
• Histogram turning positive: Increasing bullish momentum
• MACD Line making higher highs: Strengthening uptrend

Bearish Signals

• MACD Line crosses below Signal Line: Sell signal indicating downward momentum
• MACD Line below zero: Bearish trend confirmation
• Histogram turning negative: Increasing bearish momentum
• MACD Line making lower lows: Strengthening downtrend

MACD Divergences

Bullish Divergence

Occurs when price makes lower lows but MACD makes higher lows. This suggests that selling pressure is weakening and a potential reversal to the upside may be coming.

Bearish Divergence

Occurs when price makes higher highs but MACD makes lower highs. This suggests that buying pressure is weakening and a potential reversal to the downside may be coming.

💡 Divergence Trading Tips

• Divergences are more reliable in ranging markets
• Wait for price confirmation before acting on divergences
• Combine with other indicators for better accuracy
• Use volume to confirm divergence signals

How to Use MACD with Our Ticker Screener

Our ticker screener makes MACD analysis easy by automatically calculating and displaying MACD signals for all stocks. You can filter stocks based on specific MACD conditions to find the best trading opportunities. For comprehensive trading strategies, read our swing trading guideand ticker screener tutorial.

Use our ticker screener to automatically identify stocks with favorable MACD signals. Get professional-grade technical analysis and clear trade recommendations in seconds.

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