Summary
MACD stands for Moving Average Convergence Divergence. This technical indicator was created by Gerald Appel in the 1970s for stock trading. The indicator is commonly used to spot when a coin breaks the zone of resistance as well as the trends and momentum. It is a lagging indicator, because it is based on the moving averages. If a coin spikes, the indicator might not immediately provide the signal.

Simple Usage Explanation
When MACD is positive – that means that the coin is going up in price. The higher the value – the faster it is going up. The more negative MACD value is – the faster it is going down in price.

Technical Calculation
MACD graph has three components:

- MACD Line (indicates currents price movement direction and strength)
- Signal Line (soothes out the MACD line)
- MACD Histogram (difference between MACD and Signal). This is the most important value in the final MACD calculation

- X is the number of ticks in the short period EMA (usually 12)
- Y is the number of ticks in the long period EMA (usually 26)
- Z is the number of ticks of the MACD EMA line (usually 9). More on that in just a second

- Calculate short period EMA(X)
- Calculate long period EMA(Y)
- Calculate MACD Line by finding the difference between EMA(X) and EMA(Y).
- Find the Signal line by calculating the EMA of the MACD Line
- MACD Histogram is then acquired by subtracting Signal Line value (Step 4) from the MACD Line (Step 3)