• MACD (Moving Average Convergence Divergence) standard settings are (12, 26, 9).
  • MACD above zero is read as an uptrend; below as a downtrend.
  • A “golden cross” — MACD line crossing above the signal line — is often used as a long entry trigger.
  • Divergence between MACD and price tends to precede reversals.

MACD measures the spread between two exponential moving averages and plots that spread as a line. In practice, it’s a momentum indicator dressed as a trend indicator — which is why it works best in trending markets and poorly in ranges.

How MACD is built

The standard configuration uses three numbers:

  • 12-period EMA minus 26-period EMA = MACD line.
  • 9-period EMA of the MACD line = signal line.
  • MACD line minus signal line = histogram.

Reading the chart

There are three primary signals:

  • Zero-line cross — MACD crossing zero indicates a shift between bullish and bearish momentum.
  • Signal-line cross — MACD crossing the signal line is a faster, earlier signal.
  • Divergence — price makes a higher high while MACD makes a lower high (or vice versa). This is often used to anticipate reversals.

Unlike bounded oscillators such as RSI, MACD has no fixed overbought or oversold range. The histogram simply expands and contracts.

Combining with other tools

MACD pairs well with a separate trend filter:

  • 200 EMA for higher-timeframe trend.
  • Price-action levels to anchor entries.
  • A volatility filter (such as Bollinger Bands) to avoid trading the indicator during range periods.

Risks to flag

MACD lags because it’s built from moving averages. Cross signals fire after a move is underway, and divergence signals frequently appear before reversals that never happen. There are no guarantees — use stops and don’t size up just because the histogram looks strong.

FTMO — Industry standard

FTMO official

The free trial lets you test everything at no cost, and the 2-Step Challenge fee is refunded with your first payout after passing (no refund if you fail). See the FTMO free trial guide.

The5%ers — for building up from a small ticket

Operating since 2016. Three plans run in parallel — the one-step Hyper Growth, the two-step High Stakes and the three-step Bootcamp — with fees from $19. The profit split climbs in steps toward 100%, but a flat 3.5% is deducted from every withdrawal. On 2026-08-01 this site re-rated The5%ers from High to Low trust (★4.6→3.3) after the firm itself acknowledged payout delays in March 2026. If you use it, keep the ticket small and confirm your first payout arrives before scaling up.

→ See The5%ers official site (referral code “HZZS4” — 0% discount as of 2026-08-19)