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MACD

Moving average convergence divergence — the gap between two EMAs, plotted with a signal line and a histogram.

Last verified 13 September 2026 · written by the DexLadder team

What it means

Moving average convergence divergence — the gap between two EMAs, plotted with a signal line and a histogram.

Why it matters when you trade

MACD is momentum expressed as the distance between two lags. The histogram shrinking while price still advances says the move is decelerating — often the earliest mechanical hint of exhaustion. Like every derivative of moving averages it is late by construction, so it belongs in the confirmation column rather than the trigger column.

Worked example

Price makes a higher high while the MACD histogram makes a lower one: momentum is fading even as price rises.

See it on live markets

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