Summary
MACD compares moving averages of price to describe changes in trend and momentum.
Parameters
Fast controls the shorter moving-average period, Slow controls the longer period, and Signal controls the smoothing period applied to the MACD line. The defaults are 12, 26, and 9. Shorter settings respond faster; longer settings smooth more of the short-term movement.
How to read it
Review the MACD line, signal line, and histogram together with the price chart and selected settings. Crossovers can describe changes in recent momentum, but they are not guarantees of future movement.
Things to keep in mind
MACD is calculated from historical prices and can lag turning points. Different fast, slow, and signal periods can produce different observations.