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MACD

The gap between a fast and a slow EMA, and how that gap changes.

The MACD line is EMA(12) minus EMA(26). The signal line is a 9-period EMA of that. The histogram is the difference between the two.

When the histogram crosses zero, the MACD line crosses its signal line: the same event, drawn differently.

In TradeXtool

Entry: MACD histogram crosses above 0.

Watch out

MACD above zero simply means the fast EMA is above the slow one. If you already have an EMA gate, MACD often adds nothing new.

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