Technical Indicators · MACD

The trend-and-momentum hybrid built from two EMAs.

MACD measures the spread between a fast and a slow exponential moving average, then plots that spread, a smoothed signal line, and the histogram of their difference. Vant8's MACD strategy looks at the histogram's shape — specifically, repeated bars of expansion in one direction — before entering a position.

What it measures

The distance between fast and slow trend

When the fast EMA is far above the slow EMA, momentum is up and accelerating. When they cross, momentum has changed direction. The histogram makes that change visible bar by bar.

MACD line

EMA(12) minus EMA(26). Positive when fast is above slow (uptrend); negative when fast is below slow (downtrend).

Signal line

EMA(9) of the MACD line. A smoother view used as the trigger that turns a MACD-line move into a signal.

Histogram

MACD line minus signal line. Positive bars mean bullish acceleration; negative bars mean bearish acceleration. Expansion of bars in one direction is the cleanest momentum read.

Computation

Three EMAs, no hidden tweaks

MACD = EMA(close, 12) − EMA(close, 26)
Signal = EMA(MACD, 9)
Histogram = MACD − Signal
Standard Gerald Appel formulation. We do not change the smoothing or drop bars to make charts cleaner.
Defaults

The parameters we ship

Fast EMA: 12

The textbook short EMA. Captures recent momentum without overreacting to single bars.

Slow EMA: 26

The textbook long EMA. Smooths out noise and defines the base trend.

Signal EMA: 9

Smooths the MACD line itself so the histogram is meaningful.

Vant8-specific behaviour

Confirmation across multiple closes

The simplest MACD trigger — a histogram crossing zero — produces a lot of whipsaws. Vant8's strategy waits for repeated bars of expansion in the same direction before treating a move as a signal, and tracks crossover history per symbol so a single bar of noise does not flip the position.

Histogram-expansion entries

A bullish entry requires the histogram to expand positively across a configurable number of closes — not just cross zero once. Bearish entries mirror the rule.

Per-symbol crossover history

The strategy keeps a small history of crossovers per symbol so it can recognise when a fresh signal really is a regime change rather than a re-cross of the same zone.

Where it shows up

Strategies that consume MACD

MACD Strategy
Primary entry — looks for histogram expansion confirmed across multiple closing candles before acting.
How to read it

Where MACD can mislead you

Lagging by construction

MACD is built on EMAs of past prices. It tells you a change has happened, not that one is about to. Confirmation bars reduce whipsaws but cannot make the indicator leading.

Poor in ranging markets

In a sideways market the histogram oscillates around zero and signals fire constantly. Pair MACD with an ADX filter — and Vant8 does — to refuse signals when there is no underlying trend.

Pick a strategy that uses MACD.

The strategies listed above are deployed from the Strategies page on your dashboard. Each one ships with sensible defaults you can tune before deployment.