3) Technical Analysis
If you're always wondering 'is this stock going up or down?', MACD is like a GPS that tells you which direction you're heading. No more guessing — just check the direction.
MACD (Moving Average Convergence Divergence) is a trend indicator that shows the relationship between two moving averages of price. It consists of the MACD line, signal line, and a histogram that visualizes momentum.
MACD is like a GPS navigation system. The MACD line is your car's current position, and the signal line is the suggested route. When your car overtakes the route (MACD crosses above signal), you're accelerating — bullish momentum. When your car falls behind (MACD crosses below signal), you're slowing down — time to be cautious. The histogram? That's the speedometer showing how fast you're moving.
When BBCA experienced an uptrend in early 2024, its MACD showed a golden cross (MACD line crossing above the signal line) and the histogram kept growing. Traders who spotted this signal could ride the rally before it continued. Conversely, when GOTO showed a death cross on its MACD, the stock price continued weakening for weeks.
After understanding this concept, apply it in tools so decisions become more objective and measurable.
Open MACDWhat's the difference between MACD and RSI?
RSI focuses on whether the price is overbought/oversold (current condition), while MACD focuses on trend direction and momentum. RSI is like a thermometer, MACD is like a GPS. Ideally, use both for a more complete picture.
Why does MACD use 12, 26, 9?
12 and 26 are the EMA (Exponential Moving Average) periods whose difference forms the MACD line. 9 is the EMA period of the MACD line itself, which becomes the signal line. These are industry-standard settings that work well in most market conditions.
