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Technical indicator #7

MACD

Moving Average Convergence Divergence

A technical indicator that uses the gap between two moving averages to show trend momentum and turning points.

Importance★★★

TypeOscillators

Common settings12, 26, 9 are common

MT5（FUNDED7）Built in

1A 30-second chat

JUDITHThe name is long and sounds hard…

JADEIt just measures "how far apart a short moving average and a long moving average are." The wider the gap, the stronger the momentum

JUDITHIs it faster than a moving average crossover?

JADEIt often lets you notice a bit earlier. Still, it's calculated from past price moves, so it lags. It also gives false signals, so don't decide on it alone

2Here's how it looks

Where the two lines cross is a sign that momentum has changed

3Just check this

MACD and signal crossovers

When MACD crosses above the signal, it shows upward momentum; crossing below shows downward momentum

Position vs. the zero line

Above zero = upward flow, below = downward flow

Histogram

The gap between the two lines. Shrinking bars mean momentum is weakening

4Reading basics

▲ Sign it may riseMACD crosses above the signal(golden cross) → A sign that upward momentum is building

▼ Sign it may fallMACD crosses below the signal(dead cross) → A sign that downward momentum is building

Technical indicators are calculated from past price moves, so they react a little late and can be wrong (false signals). The basic rule is not to decide from just one.

5Prop firm watch-outs

In a sideways market MACD crosses again and again, and trading every cross piles up losses from false signals. Instead of entering on every cross, set a rule to use only crosses in the same direction as the moving average. That keeps your number of trades down.

Daily loss line:5% of the previous day's closing balance. Unrealized losses count too (Official FAQ）

6How to show it in MT5

These are real screens from the Android MT5 app.Swipe sideways, or use the button below to go next

1 / 4

📱 Smartphone (iPhone & Android)

Tap the wavy-line icon (Indicators / インディケータ) at the top of the chart screen

Tap "f+" to the right of Main chart (メインチャート). (Indicators shown in the lower window open in a separate window automatically)

Tap "MACD" in the list

Enter the numbers and tap Save (保存) at the top right

💻 Computer

In the top menu, click Insert (挿入) → Indicators (インディケータ) → Oscillators → MACD

When the settings window (Parameters / パラメータ) opens, enter the numbers below

Tap OK to finish. You can also drag it onto the chart from the Navigator (ナビゲーター) on the left

🔧 Numbers to enter (common settings)

✓

Short-term EMA

✓

Long-term EMA

✓

MACD SMA (Signal)

In MT5's MACD, the bars are the MACD and the dotted line is the signal. It looks different from the "two lines" shown in other chart software, so be careful. For the steps, see the official help from MT5's developer (iPhone · Android · PC). Menu names may appear in English depending on your language settings.

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Common settings are general guides. How to show them depends on the chart software.