What it means
MACD plots the difference between a 12-period and 26-period exponential moving average, with a 9-period signal line. Crossovers of the MACD line above/below the signal line are buy/sell triggers; crossovers above/below zero indicate trend direction.
Why it matters
MACD compresses two moving averages and a signal line into a single subwindow chart. It's a swing trader's standard. Less useful in choppy markets where it whipsaws.
How to use it
Use MACD on multi-timeframe analysis: align direction on weekly, time entries on daily. Watch for histogram divergences against price - often the cleanest signal MACD provides.
Take it further
Want a worked example or a deeper dive? Ask Rocky how this concept applies to your specific watchlist or trade idea.
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