MACD (Moving Average Convergence Divergence)
Trend-following momentum from the gap between a fast and a slow moving average.
Technical indicators
Live NSE examples below
What is MACD?
MACD, developed by Gerald Appel, tracks the difference between a fast (12-day) and a slow (26-day) exponential moving average of price. When the fast average pulls away above the slow one, upward momentum is building; when it falls back, momentum is fading. A 9-day average of MACD itself, the signal line, turns those swings into crossover signals.
Formula
MACD line = EMA(12) of close − EMA(26) of close
Signal line = EMA(9) of the MACD line
Histogram = MACD line − Signal line
How to read it
- MACD crossing above its signal line is a bullish crossover; crossing below is bearish.
- Where the cross happens matters. Below the zero line it is an early reversal signal; above zero it is trend continuation.
- The histogram shrinking toward zero shows momentum slowing before the lines actually cross.
- MACD above zero simply means the 12-day EMA is above the 26-day EMA, a short-term uptrend.
Common mistakes
- Trading every crossover in a sideways market. MACD whipsaws when there is no trend, so pair it with ADX above 20 to filter.
- Comparing MACD values across stocks. The raw number is in rupees and scales with the share price; only its sign and crossovers compare.
Live: NSE stocks matching this today
MACD bullish crossovers today 725
| Stock | Change % | MACD line | MACD signal |
|---|---|---|---|
| MRFMRF Limited | +6.73% | -1,365.26 | -1,974.01 |
| DIXONDixon Technologies (India) Limited | +2.65% | -260.32 | -415.12 |
| POWERINDIAHitachi Energy India Limited | -3.09% | -780.19 | -917.96 |
| NEULANDLABNeuland Laboratories Limited | +1.06% | -508.16 | -628.08 |
| PAGEINDPage Industries Limited | -0.64% | -358.06 | -470.21 |
| INDIGOInterGlobe Aviation Limited | +5.43% | 54.09 | -29.92 |
| 3MINDIA3M India Limited | +1.70% | -818.07 | -897.05 |
| LINDEINDIALinde India Limited | -1.29% | -38.37 | -108.26 |
MACD bearish crossovers today 74
| Stock | Change % | MACD line | MACD signal |
|---|---|---|---|
| RPGLIFERPG Life Sciences Limited | -0.11% | -59.01 | -29.83 |
| JSWHLJSW Holdings Limited | +0.92% | -76.32 | -47.16 |
| AIAENGAIA Engineering Limited | -0.55% | -152.59 | -124.14 |
| SOLARINDSSolar Industries India Limited | -4.50% | -199.16 | -176.19 |
| CRISILCrisil Limited | -0.44% | -17.39 | 5.51 |
| CRAFTSMANCraftsman Automation Limited | +0.11% | -29.47 | -8.89 |
| ESCORTSEscorts Kubota Limited | -0.35% | -88.85 | -72.70 |
| SHRIPISTONShriram Pistons & Rings Limited | +1.05% | -40.32 | -26.80 |
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Frequently asked questions
Is MACD a leading or lagging indicator?
Lagging. It is built from moving averages, so it confirms a move that has started rather than predicting one. The histogram and divergences are its most forward-looking parts.
Related concepts
RSI (Relative Strength Index)A 0-100 momentum oscillator: how strong recent up-moves are compared with down-moves.Moving averages (SMA, EMA, 50 and 200 DMA)The average closing price over a window, used to define the trend.ADX (Average Directional Index)Measures how strong a trend is, whatever its direction.Bullish and bearish divergencePrice and an indicator disagreeing about the trend's strength.
