MACD (Moving Average Convergence Divergence)
A trend-following momentum indicator showing the relationship between two moving averages of a stock's price.
Explained Simply
MACD is calculated by subtracting the 26-period EMA from the 12-period EMA. The result is the MACD line. A 9-period EMA of the MACD line is the signal line. When MACD crosses above the signal line, it's a bullish signal; below is bearish. The MACD histogram (difference between MACD and signal line) shows momentum strength. MACD is best used for confirming trends, not predicting reversals.
How Tradewink Uses MACD (Moving Average Convergence Divergence)
The AI uses MACD as one of multiple confirmation indicators for momentum breakout signals. A bullish MACD crossover occurring simultaneously with a price breakout above resistance provides much higher-confidence signals than either alone. MACD histogram divergences are also used to detect trend exhaustion.
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See MACD (Moving Average Convergence Divergence) in action
Tradewink uses macd (moving average convergence divergence) as part of its AI trading signal pipeline. Start getting signals that use this concept to find real opportunities.