It may also be helpful to read our article on a stock's MACD to gain more context before reading the following: Click Here
MACD, or the Moving Average Convergence Divergence, is a technical analysis tool that is used to help identify potential buying and selling opportunities in the stock market. Developed by Gerald Appel in the 1970s, MACD is a momentum indicator that is calculated by subtracting a 26-day exponential moving average (EMA) from a 12-day EMA. The resulting line, known as the MACD line, is plotted on a separate chart from the stock's price chart and is typically displayed with a zero line.
In addition to the MACD line, a MACD chart also includes a signal line, which is a 9-day EMA of the MACD line. The purpose of the signal line is to smooth out the MACD line and to provide a clearer picture of the underlying trend.
One important use of MACD is to help traders and investors identify potential buying and selling opportunities. When the MACD line crosses above the signal line, it is often interpreted as a buy signal, as it may indicate that the stock's momentum is increasing. Conversely, when the MACD line crosses below the signal line, it is often interpreted as a sell signal, as it may indicate that the stock's momentum is decreasing.
MACD limit target alerts trigger when a stock's MACD value crosses the limit set.
MACD bearish crossover alerts trigger when a stock's MACD value is below than the MACD Signal line indicating a negative shift in momentum.
MACD bullish crossover alerts trigger when a stock's MACD value is above than the MACD Signal line indicating a positive shift in momentum.
With Stock Alarm you can set MACD alerts on stocks, etfs, crypto, indices, commodities, and more. When your alert triggers you will receive a notification via push notification, email, phone call, or text message.
DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS WEBSITE. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.