What it does
MACD (Moving Average Convergence Divergence) tracks the distance between two EMAs of price, by default the 12-period minus the 26-period EMA. That difference is the MACD line; a 9-period EMA of it forms the signal line, and the histogram plots the gap between the two. When the fast EMA pulls away from the slow one momentum is building; when they converge momentum is fading.
How to add it
Click Indicators (ƒx) in the header.
Search “MACD” and click the result.
Hover its legend row and click the gear to open settings.
How traders use it
- Trade signal-line crossovers: MACD crossing above its signal line is a bullish trigger, crossing below is bearish, strongest when taken in the direction of the larger trend.
- Use the zero line as a regime filter: MACD above zero means the 12 EMA is above the 26 EMA (bullish regime); many traders only buy crossovers that occur above zero.
- Watch the histogram for early warning: shrinking histogram bars show momentum fading before an actual crossover happens.
- Trade divergences: price making new highs while MACD makes lower highs flags a weakening trend and potential reversal.
- On daily charts the default 12,26,9 works well; shorter settings such as 5,35,5 or 8,17,9 are sometimes used for faster markets.
Inputs
| Input | Type | Default | Range / Options |
|---|---|---|---|
| Fast Length | number | 12 | 1–2000 |
| Slow Length | number | 26 | 1–2000 |
| Signal Smoothing | number | 9 | 1–100 |
| Source | select | close | Close / Open / High / Low / HL2 / HLC3 / OHLC4 |
| Oscillator MA Type | select | EMA | SMA / EMA |
| Signal MA Type | select | EMA | SMA / EMA |
| Symbol | symbol | — | — |
Plots & styling
| Plot | Style | Default color |
|---|---|---|
| Histogram | histogram | #FF5252 |
| MACD | line | #2196F3 |
| Signal | line | #ff6d00 |
Every plot's color, line width and visibility can be changed on the Style tab. Precision (default 2 decimals), price-scale labels and status-line values are configurable at the bottom of the Style tab.
Reference levels
| Level | Value |
|---|---|
| Zero | 0 |
Level values, colors and line styles are editable in settings.
Tips
- Resize the pane by dragging its divider; collapse it from the legend row when you need the space back.
- Use Add to favorites in the legend menu; starred studies surface at the top of the picker.
- Reference levels (where the study has them) are editable — tune them to the instrument you're trading.
- This indicator accepts another symbol — leave it empty to use the chart's own symbol.
Watch out for
- Built from moving averages, MACD lags price and gives late signals after sharp turns.
- It is unbounded, so there are no fixed overbought/oversold levels, and it whipsaws badly in tight ranges.