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How to Read the MACD Indicator
3:07 · 8 chapters · Forex lessons, part 51
What you'll learn
The MACD shows trend and momentum in one window, but it lags. Here's how to read its three parts and filter the noise.
Go further with our written guide on this topic, browse all the free Learn Forex lessons, or check today's market in our forex news.
- Key point 1
- The three parts: MACD line, signal line and histogram
- Key point 2
- Four signals, from the earliest to the most reliable
- Key point 3
- Why the MACD lags and how to filter crossovers
- Key point 4
- A worked EUR/USD example, including divergence
- Key point 5
- Common settings for scalping, day, swing and position trading
Rules and limits from regulators and official sources; every price, account and chart in the video is an example. Education, not financial advice.
More forex lessons
The video is presented by an animated host with a computer-generated voice; the research and checks are by the FX Recap team. Risk warning: forex and CFD trading carries a high risk of losing money because of leverage, and most retail accounts lose money. This is education and review, not financial advice. FX Recap may earn a commission from some broker links; see our affiliate disclosure.