Technical indicators

MACD line

Defined in 1 lesson · Updated October 17, 2026

Definition

The 12-period EMA minus the 26-period EMA of the close. Above zero, the fast average is above the slow one; below zero, it is under it.

Example

Say a stock’s 12-period EMA is $101.50 and its 26-period EMA is $100.00, so the MACD line reads +1.50. If the fast EMA later slips to $99.80 while the slow one sits at $100.10, MACD turns −0.30, below zero. Because MACD is measured in price units, a reading of 1.50 on a $100 stock is not comparable with 1.50 on a $10 stock.

Hypothetical numbers, for illustration only.

An uptrend with a fast EMA (solid line, labeled EMA 9) and a slower EMA (dashed line, labeled EMA 20); price pulls back to the fast EMA, holds it and prints a buy signal.

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