Understand before you act
MACD, explained
MACD compares faster and slower exponential averages to show changes in momentum. Its histogram shows the gap from a signal line.
How Index Screener uses it
Moving Average Convergence Divergence
The MACD line is EMA 12 minus EMA 26. The signal line is its 9-period EMA. Histogram = MACD line minus signal line.
What it helps you assess
Check whether momentum is strengthening or weakening within a trend.
What it cannot tell you
MACD lags price and is not an overbought/oversold scale. A positive histogram contributes one point to this site’s trend score.
Before an entry or exit
These are learning examples to build your own checklist. They are not tested trading rules or personalized recommendations.
Look for confirmation
A crossover above the signal line may support an entry checklist when price and trend agree. Check whether a range is causing repeated false crossings.
Follow your risk plan
A crossover below the signal line can prompt a review alongside price support and your stop. Do not use it to postpone a risk limit already reached.
Keep learning
Further reading
References explain the indicators. Site rules and the example checklists above are described by Index Screener.