🚀 Day 25 — MACD Explained (Simple & Practical)
MACD helps traders spot momentum shifts and trend changes.
💡 What Is MACD?
MACD = Moving Average Convergence Divergence
It compares two moving averages to show:
✔ Trend direction
✔ Momentum strength
✔ Possible reversals
🟦 MACD Has 3 Parts
MACD Line → Fast trend movement
Signal Line → Trend confirmation
Histogram → Momentum strength
🟨 How Traders Use MACD
Bullish Signal: MACD crosses above signal line
Bearish Signal: MACD crosses below signal line
Divergence: Price up, MACD down → possible reversal
🎯 Key Tip
MACD works best when combined with support/resistance and trend direction — never use it alone.
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