MACD Scans

What is MACD?

The Moving Average Convergence Divergence (MACD) is a momentum indicator that shows the relationship between two exponential moving averages of price.

• MACD Line: EMA(12) − EMA(26) — the core momentum signal.
• Signal Line: 9-period EMA of MACD Line — used to generate crossover signals.
• Histogram: MACD − Signal Line — shows momentum acceleration. Growing histogram = strengthening trend.
• Bullish: MACD above zero and histogram positive — strong uptrend momentum.
• Bullish Crossover: Histogram just turned positive — early buy signal.
• Bearish Crossover: Histogram just turned negative — early sell signal.
• Fresh Crossover: Histogram crossed zero in the last session — the most actionable signals.

How to Use MACD Scans to Choose Stocks

• Select all stocks and look at the MACD Value and Signal columns to identify crossovers.
• For MACD Cross Above stocks: MACD line has just crossed above the signal line — bullish signal. Consider buying near support levels.
• For MACD Cross Below stocks: MACD line has just crossed below the signal line — bearish signal. Consider selling near resistance levels.
• Stocks with positive MACD (above zero line) and positive histogram are in confirmed uptrends.
• The best MACD settings for most traders are the default 12, 26, 9 — though some use 5, 13, 1 for shorter timeframes.

FAQs on MACD Indicator

Do professional traders use MACD? Yes — MACD is one of the most widely used indicators globally by professional traders due to its simplicity and versatility as both a trend and momentum indicator.

What is the MACD divergence signal? When price makes a new high but MACD makes a lower high, it signals bearish divergence — a potential reversal. When price makes a new low but MACD makes a higher low, it signals bullish divergence — a potential bounce.

Related Tools

• EMA 9-12-26 Screener
• MA Crossover Screener
• RSI Scans
• Supertrend Scans