MACD is a trend-following momentum indicator developed by Gerald Appel in the late 1970s. Shows relationship between two moving averages.
๐ How to Read MACD
- MACD crosses above Signal (Bullish Cross): Buy signal
- MACD crosses below Signal (Bearish Cross): Sell signal
- Histogram positive growing: Strong momentum up
- MACD Divergence: Price vs MACD diverge โ reversal coming
๐ฏ Trading Strategy
- Buy when MACD crosses up + histogram turns positive
- Sell when MACD crosses down + histogram turns negative
- Combine with RSI, Volume to confirm