MACD
Tracks the relationship between two exponential averages and its own signal line.
Start with the input, not the story.
Directional momentum and convergence or divergence between faster and slower EMA estimates.
Plain-language formula
Platform implementations can differ in price input, smoothing, indexing and rounding. Record the exact settings and provider before comparing results.
Where it may help
Momentum confirmation in directional markets and systematic divergence research.
Where it struggles
Ranges, where repeated zero-line and signal crosses can whipsaw.
Add a different measurement.
A complementary tool should answer a different question, such as volatility, regime or position risk. Test the base rule before testing the combination.
The shortcut to avoid
Calling every visual divergence a reversal without objective swing rules.
A testable next step
Separate zero-line state, signal cross and histogram change into distinct hypotheses.