Moving Average Convergence Divergence Crossover

The Moving Average Convergence Divergence, or MACD, is a trend-following momentum indicator that shows the relationship between two moving averages of an asset's price. A crossover occurs when the MACD line crosses above or below the signal line, providing potential buy or sell signals.

A bullish crossover, where the MACD line moves above the signal line, suggests increasing upward momentum. A bearish crossover, where the MACD line moves below the signal line, suggests increasing downward momentum.

These crossovers are widely used to confirm the direction of a trend and to identify potential shifts in momentum. In the fast-moving world of crypto, MACD crossovers are essential for identifying the transition between accumulation and distribution phases.

They provide a clear, rule-based approach to trend analysis, though they are lagging indicators that require careful interpretation in choppy markets.