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MACD Indicator

What is MACD?

Moving Average Convergence Divergence (MACD): (1) MACD line = 12-period EMA minus 26-period EMA; (2) Signal line = 9-period EMA of MACD line; (3) Histogram = difference between MACD and signal line. Default: 12, 26, 9.

MACD Signals

Bullish crossover: MACD crosses above signal line = buy signal. Bearish crossover: MACD crosses below signal = sell. Zero line cross: strong trend shift. Histogram shrinking = fading momentum. MACD divergence is the strongest signal.

MACD on Gold (XAU/USD)

On the daily gold chart, MACD crossovers coinciding with RSI extremes and key price levels produce high-probability setups. Use MACD on 4H for trend direction and RSI for entry timing.

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Frequently Asked Questions

What is the best MACD setting for forex?
The default (12, 26, 9) works well for daily and 4H. For shorter timeframes (1H), (5, 13, 1) gives faster signals.
MACD vs RSI — which is better?
Neither is better — they complement. MACD for trend direction, RSI for entry timing. Use both together.

Related Guides

RSI Indicator → Candlestick Patterns → Support and Resistance →