đ Day 25 â MACD Explained (Simple & Practical)
MACD helps traders spot momentum shifts and trend changes.
đĄ What Is MACD?
MACD = Moving Average Convergence Divergence
It compares two moving averages to show:
â Trend direction
â Momentum strength
â Possible reversals
đŠ MACD Has 3 Parts
MACD Line â Fast trend movement
Signal Line â Trend confirmation
Histogram â Momentum strength
đš How Traders Use MACD
Bullish Signal: MACD crosses above signal line
Bearish Signal: MACD crosses below signal line
Divergence: Price up, MACD down â possible reversal
đŻ Key Tip
MACD works best when combined with support/resistance and trend direction â never use it alone.
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