MACD Indicator Guide

The MACD line

Moving Average Convergence Divergence compares moving averages. The common MACD line subtracts the 26-period exponential moving average from the 12-period exponential moving average.

Signal line and histogram

A conventional chart also shows a signal line, commonly a 9-period exponential moving average of MACD. The histogram represents the difference between MACD and that signal line.

What TejTrade AI currently displays

The current app calculation returns the MACD line using 12- and 26-period exponential averages. That single value does not establish whether a signal-line crossover has occurred. A positive MACD means the shorter average exceeds the longer average; it does not guarantee a price increase.

Compare like with like

Check the interval, data timestamp and calculation settings when comparing platforms. MACD follows historical prices and can produce repeated changes in direction during a sideways market. Examine the chart rather than interpreting one number in isolation.

Further reading

Fidelity: understanding MACD

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