Unit 1 · Level 3 · Indicators
MACD: trend + momentum
MACD tracks the GAP between a fast and a slow moving average. Gap widening: the trend is accelerating. Gap shrinking: it's losing steam. A 'signal line' smooths the MACD itself, and their crossovers mark momentum shifts. It's your MA knowledge, upgraded with a speedometer.
Free to play. No ads, no token, no account needed to start.
What you get asked
What is the MACD line, at its core?
Fast MA minus slow MA. When the fast one pulls away upward, MACD rises: the trend is gaining speed. Everything else is presentation.
Match the MACD event to its meaning
The histogram (bars) just draws the gap between MACD and its signal line, a picture of acceleration.
MACD's known weakness, inherited from moving averages, is that it…
Built from MAs, it confirms rather than anticipates. Pros accept the lag as the price of fewer false signals, and they NEVER use crossovers alone in chop.
In sideways ranges, MACD crossovers fire constantly and falsely, a problem called ___.
Trend tools belong in trends. In a range, crossover-following buys every top and sells every bottom. First question, always: is this even trending?
Trained synthesis: the highest-quality MACD signal of these is…
Confluence: structure + trend + indicator + volume all agreeing. One witness can lie; four telling the same story is a case. That's the whole art. 🐜
The rest of this unit
RSI, MACD, Bollinger Bands, and confluence: interrogating witnesses without obeying them.