WickCheck / Trading school / MACD
MACDMoving Average Convergence DivergenceIntermediate
The gap between a fast and a slow EMA, with a signal line and histogram.
What it means
Default settings are 12, 26 and 9. Crosses of the signal line and the zero line are the usual triggers; divergence with price is another use.
How to spot it
- MACD line crossing the signal line, or the histogram changing colour.
Common mistakes
- Using it as a stand-alone entry signal.
Related terms
Moving averageThe average closing price over the last N candles, drawn as a line.…RSIA 0–100 oscillator that compares recent gains with recent losses.…DivergencePrice makes a new high or low but an oscillator does not.…
Why most strategies need a human behind the screen
Read the lessonWhat a mechanical test can and cannot tell you about smart money concepts.
Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.