Question 1

What is MACD?

Accepted Answer

MACD compares a fast and a slow EMA to show momentum. It uses the MACD line, a signal line, and a histogram.

Question 2

How do I read the MACD histogram?

Accepted Answer

The histogram shows the distance between the MACD line and the signal line. Rising bars suggest strengthening momentum; shrinking or negative bars can warn of reversals.

Question 3

What are common MACD settings?

Accepted Answer

12/26 EMAs with a 9‑period signal are common defaults; adjust for timeframe and asset behavior.