Moving Average Convergence Divergence (MACD)

A powerful momentum indicator for identifying trend changes and trading opportunities

The MACD is used to measure the momentum of an asset (such as cryptocurrency) and helps determine optimal times to enter or exit trades.

How MACD is Calculated

MACD is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. This produces the MACD line. The signal line is a 9-period EMA of the MACD line itself.

Key Signals: Crossovers

When the MACD line crosses above the signal line → bullish signal (potential buy/entry). When the MACD line crosses below the signal line → bearish signal (potential sell/exit).

Best Usage Conditions

MACD works on any timeframe—from 1-minute charts to long-term investing. It performs best in trending markets (up or down) and is less reliable in sideways / ranging markets.

How CryptoPonya Uses MACD

Widely used indicator that identifies trend direction, momentum shifts, and potential reversals — fully automated in our AI trading system.

Explore AI Automated Trading with MACD

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