> For the complete documentation index, see [llms.txt](https://docs.thirddimension.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.thirddimension.exchange/analytics-panels/chart/technical-indicators/oscillators/moving-average-convergence-divergence-macd.md).

# Moving Average Convergence/Divergence (MACD)

## Description <a href="#description" id="description"></a>

Moving average convergence/divergence(MACD) indicator graphically describes the mathematical difference between fast and slow exponential moving averages. The third line is called a “signal line”. Common periods of moving averages are: 26 for a slow EMA, 12 for a fast and 9 for a signal line.

![](/files/7lGP7v5B1M0KJaGnRakq)

## Formula <a href="#formula" id="formula"></a>

Fast EMA - Slow EMA

## Most useful cases <a href="#most-useful-cases" id="most-useful-cases"></a>

* **Divergence/Convergence** - Divergence/Convergence pattern is a form of price action when new high(low) on the price scale not confirmed with a new high of MACD. Such price and indicator’s behavior can be interpreted as the weakness of current existing trend.

![](/files/2SOsr7NmFyqmH9pCWyMp)

* **Crossover** - Crossover pattern occurs when MACD value crosses the signal line upward or downward. This signal can be used as a trigger to open buy/sell position.
* **Crossing zero line** - this is a trend reversing signal and it can be very useful in case of determining a correction of existing trend, beginning of a new trend wave or starting a new trend.