MACD Divergence Calculator
Key Takeaway
MACD (Moving Average Convergence Divergence) identifies trend changes by comparing two moving averages. A bullish crossover (MACD crossing above signal line) is a widely-used buy signal.
MACD Calculator
Calculate MACD line, Signal line, and Histogram.
Bullish Momentum (Histogram > 0)
What to do next
Based on your MACD Divergence Calculator, here are the tools you should try next:
Advertisement
Moving Average Convergence Divergence Formula
Identifies technical momentum shifts, bullish and bearish crossovers, and divergence trends.
Worked Example: 12-day EMA is 15.2 and 26-day EMA is 12.8
MACD Momentum: Trading crossovers and trend divergence patterns
Aditi watched a stock consolidation. She plotted the MACD indicator and observed the MACD line crossing above the Signal line, accompanied by a rising histogram.
This bullish crossover signal prompted her to enter a long trade, capturing a 5% breakout move over the next three sessions.
The MACD measures momentum by comparing short-term and long-term exponential moving averages of closing prices.
Always look for MACD divergences: if price makes a new low but MACD makes a higher low, it signals a powerful trend reversal.
Frequently Asked Questions
What is the MACD indicator?
Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of a stock's price.
What is a MACD crossover?
A bullish crossover occurs when the MACD line crosses above the signal line. A bearish crossover occurs when the MACD line crosses below the signal line.
What is MACD divergence?
Divergence occurs when the stock price makes a new high/low, but the MACD indicator fails to make a corresponding high/low. This often signals that the current price trend is exhausting and about to reverse.
Compare & Open a Demat Account
Disclosure:These are unbiased affiliate links. We may earn a commission if you open an account, at no extra cost to you. We recommend comparing platforms and selecting the one that best fits your financial needs.
Get Smarter With Money Every Week
Join 10,000+ readers. One actionable money tip delivered free every Sunday.
Was this calculator helpful?
Grow Your Service Business Online
Spend less time managing appointments and more time growing your business. Accept appointments 24/7, manage walk-ins, schedule staff, and track revenue from one place.
Advertisement