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MACD Trend

Is the gap between the averages above its recent pattern?

Use the same apple stall again. A fast average responds to newer prices sooner than a slow average. MACD measures the gap between those averages, then compares that gap with its own recent pattern.

The pair arrange recent records close at hand and older records farther back.

Make one average faster

Both averages give newer apple prices more weight. The 12-day average reacts faster; the 26-day average reacts more slowly. These are exponential moving averages, or EMAs.

The bull and bear measure the separation between two teaching ribbons.

Measure the gap in cents

Subtract the slow average from the fast average. That gap is MACD. We show it in cents so small differences stay easy to read. A negative gap means the fast average is below the slow one.

The pair compare the moving gap with its smoother companion ribbon.

Check which side of zero

On day 26, MACD is about 9 cents, so this rule says Yes. The separate signal line can be above or below MACD; it is not part of this score comparison.


Example

One year at the apple stall

The upper chart shows apple prices. Below, inspect the fast-minus-slow average gap and its zero line; the signal is shown for context.

  • Apple price

The gap and its signal, in cents

  • MACD line
  • Signal line
  • MACD zero line

On day 26, the apple-price MACD is about 9 cents, above zero. The MACD line is the fast average minus the slow average; the score checks its side of zero.

Prices are whole dollars. Averages, scores and returns are shown as approximate whole numbers; MACD gaps use cents. The lines and rule comparisons use the full calculation. A moving average begins only when enough days are recorded.

What the lines mean

The upper chart shows apple prices. Below it, MACD is the 12-day exponential average minus the 26-day average. The zero line shows which average is higher; the smoothed signal line remains visible for context.

Bull Run Score

MACD Trend

This site uses the following calculation to check whether this indicator signals a Bitcoin bull run. Each Yes adds one point to the Bull Run Score, out of five.

Yes when MACD(12,26) is above zero. Zero or a negative MACD is No when inputs are available. The signal line does not determine this score.

MACD = EMA12 − EMA26; Yes when MACD > 0

What this cannot tell you

A positive MACD describes the relationship between two averages. It can lag a turn and does not promise that prices will keep rising.

An indicator needs enough recorded observations before it can be evaluated. Missing inputs mean unavailable, not No.

These are independent rules. They can disagree, and a Yes is not a forecast or a recommendation.

Back to the charts

Test Your Knowledge

Question 1 of 3

The apple-price MACD is 18 cents and its signal is -25 cents. What is the score result?