01 · Indicator · MACD
What is the MACD?
Created by Gerald Appel in the late 1970s, the MACD subtracts a slow exponential moving average (26 periods) from a fast one (12 periods). When the fast average pulls away upward, bullish momentum is accelerating; when the gap narrows, it is slowing down.
It is both a trend and a momentum indicator: it reacts later than the RSI but filters more noise.
02 · Indicator · MACD
The three components
MACD line = EMA 12 − EMA 26. Signal line = EMA 9 of the MACD line. Histogram = MACD − signal, shown as green or red bars.
The histogram is the most readable part: growing bars show acceleration, shrinking bars show fading momentum, even before the two lines cross.
03 · Indicator · MACD
Crossovers and the zero line
A MACD line crossing above the signal is read as bullish, below as bearish. Crossing above zero means the fast EMA is back above the slow one: the underlying trend is turning.
Crossovers are frequent in directionless markets. First check on a higher timeframe or with the Ichimoku cloud that the market is actually trending.
04 · Indicator · MACD
MACD divergences
When price makes a new high but the histogram makes a lower peak, buying pressure is fading. These divergences are common in crypto after strong rallies.
They carry more weight when they occur against a Bollinger band or inside an Order Block zone.
05 · Indicator · MACD
Adjusting the settings
12/26/9 was designed for daily candles. Intraday, some traders switch to 8/17/9 for faster reactions; for the long term, larger values smooth the curve.
On GraphTrade, all three parameters can be edited in the indicator's sheet. To follow several assets at once, the Portfolio and the Scanner on the Charts page let you flip through your markets with one key.
◆ Step by step
Get started in 4 steps
- 01
Pick the asset
Open the Charts page and search for the asset.
- 02
Add the MACD
In Indicators, Momentum group, add MACD.
- 03
Watch the histogram
Spot acceleration and fading phases before crossovers.
- 04
Confirm
Validate the signal with the main trend and a key level.
◆ FAQ
Your questions, clear answers.
01What do 12, 26, 9 mean?
12 and 26 are the periods of the two EMAs, 9 is the period of the signal line.
02Is the MACD reliable?
It works well in trends but produces false signals in ranges. Combine it with price structure.
03MACD or RSI?
They complement each other: the RSI measures excess, the MACD trend dynamics.
04Why does the histogram change color?
It turns green when the MACD line is above the signal, red when it is below.