MACD Divergence Calculator
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:
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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.
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