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MACD Indicator Chart

Track the gap between two moving averages to read momentum and its turning points.

What is the MACD indicator?

MACD, or Moving Average Convergence Divergence, is a momentum indicator built by Gerald Appel in the late 1970s. The MACD line is the difference between a fast and a slow exponential moving average — conventionally the 12-period minus the 26-period. A 9-period EMA of that line, called the signal line, is plotted on top. Crossovers, the zero line and the histogram between the two lines all convey momentum information.

MACD (12, 26, 9)time-series

Illustrative MACD line and 9-period signal line derived from a synthetic price path. Data is for demonstration only.

MACD compresses two moving averages into a single oscillator that swings around zero. Rather than watching two lines converge and diverge on a price chart, you read their distance directly. This tool plots the 12/26 MACD line with its 9-period signal line so you can spot crossovers and momentum inflections.

The three ways to read MACD

MACD offers three distinct signals. A signal-line crossover fires when the MACD line crosses its 9-period average, flagging an acceleration in momentum. A zero-line crossover marks the point where the fast EMA overtakes the slow one, confirming a trend-regime change. The histogram — MACD minus signal — shows momentum building or fading before the lines actually cross, making it the most forward-looking of the three.

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Because every component is derived from exponential moving averages, MACD inherits their lag: it confirms moves rather than anticipating them. The trade-off is fewer false alarms than a raw price oscillator. Analysts who want earlier warnings watch the histogram's slope, while those who want higher conviction wait for the slower zero-line cross.

MACD divergence

As with many momentum tools, MACD's subtler value is divergence. If price prints a higher high while the MACD line prints a lower high, the rally is being driven by weakening momentum, a classic bearish divergence. The bullish mirror appears at lows. Divergence is not a timing tool — momentum can fade for a long time before price follows — but it flags trends that are running on fumes.

How Quadesto computes it

Quadesto derives MACD straight from your uploaded price series. You set the fast, slow and signal periods, and the compute engine produces the MACD line, the signal line and the histogram as derived columns using proper EMA smoothing. Plot them as their own panel beneath price, as shown above, and embed the result so the indicator recalculates each time your data refreshes.

Build this with your own data

Upload a CSV or connect a live source, and Quadesto renders this exact chart — styled, computed, and embeddable in your reports and newsletters. Free to start.

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Frequently asked questions

What are the default MACD settings?
The standard configuration is a 12-period fast EMA, a 26-period slow EMA and a 9-period signal line, usually written as MACD(12,26,9). Faster settings react sooner but whipsaw more; slower ones are steadier. The defaults suit daily charts and are a sensible starting point.
What does a MACD crossover signal?
When the MACD line crosses above its signal line, upward momentum is accelerating and it is read as bullish; a cross below is bearish. Crossovers near the zero line carry more weight than those far from it. Use them with trend context rather than in isolation.
What is the MACD histogram?
The histogram plots the distance between the MACD line and the signal line. Rising bars show momentum strengthening, shrinking bars show it fading. Because it moves before the lines actually cross, the histogram is often the earliest of MACD's signals to turn.
What is MACD divergence?
Divergence occurs when price and MACD disagree — for instance price makes a new high but MACD makes a lower high. It warns that the move is losing momentum. Divergence is an early caution, not a precise entry signal, so pair it with confirmation.
Can I compute MACD on my own data?
Yes. Upload a price series to Quadesto, choose fast, slow and signal periods, and the engine appends the MACD line, signal line and histogram. Plot them together and embed the panel wherever you publish.