A plain-English explainer — then the honest backtest, because knowing what it is isn't the same as knowing whether it works.
MACD — Moving Average Convergence Divergence — tracks the gap between a fast and a slow moving average of price. When that gap widens or flips sign, momentum is shifting.
Traders act on three things: the MACD line crossing its signal line, the histogram flipping positive, or the MACD crossing the zero line. Each is a slightly different bet on momentum turning.
On honest testing the plain MACD crossover is middling — plausible but fragile. Pairing it with a genuine trend filter is what separates the versions that survive scrutiny from the ones that don't.
Does the MACD indicator actually work?
Don't take the textbook's word for it — see the honest, survivorship-free score.
See the honest backtest →the MACD crossover · the MACD zero-line cross · the MACD histogram flip · the MACD signal-line cross · all strategies →
MACD — Moving Average Convergence Divergence — tracks the gap between a fast and a slow moving average of price. When that gap widens or flips sign, momentum is shifting. Traders act on three things: the MACD line crossing its signal line, the histogram flipping positive, or the MACD cross
On its own, the MACD indicator is an indicator, not a guarantee. We backtested the strategies built on it with survivorship-free data — see the honest scores linked below.
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Educational, not financial advice. An honest backtest score measures whether a result survives statistical scrutiny — it does not predict future profit, and is not a buy or sell signal. · About · FAQ · All strategies