MACD

The MACD, or Moving Average Convergence Divergence, is a momentum indicator used in technical analysis that shows the relationship between two moving averages of an asset's price. It consists of a MACD line, a signal line, and a histogram. Traders use MACD crossovers and divergences to identify potential trend changes and momentum shifts. Like all technical indicators, MACD is a lagging tool — it confirms price movements that have already begun rather than anticipating them. One-Signal deliberately excludes MACD and other technical indicators from its signal methodology. Our system is based entirely on sentiment indicators — forward-looking measures of investor psychology including the VIX, put/call ratio, and sentiment surveys. This avoids the self-fulfilling and trend-following limitations inherent in price-based technical analysis.

See our approach: one-signal.com/performance. Not financial advice.