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Technical Analysis

What is MACD (Moving Average Convergence Divergence)?

Reviewed by the ONCHAIN TRADE DOJO team · Updated March 12, 2026

Trend-following indicator with MACD line, signal line, and histogram. Crossovers signal trend changes.

Example

After a downswing, the MACD line crosses above its signal line and the histogram flips from red to green — a bullish crossover. On Ethereum, such a signal once lined up with a pullback to support, strengthening the long setup. Important: MACD is a lagging indicator. In sideways markets it produces many false signals — it works best in clearly trending phases, ideally confirmed by volume.

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