MACD
Compare two exponential moving averages and their signal line.
What to notice
MACD can show the direction and pace of a trend, while its histogram visualizes the gap between MACD and its signal line.
The context that matters
It is based on past closes and may react late in fast markets. Confirm with price structure.
Common mistake
Mistaking a shrinking histogram for a confirmed reversal.
Try it on a chart
Mark when MACD first cooled and when price actually broke a swing level.
Open Paper Signal LabPaper Signal Lab provides educational chart analysis and simulated research. Patterns and historical paper outcomes do not guarantee future market results. Public research does not grant real-money trading access.