{"format":"alysly-page/1","url":"https://alysly.com/learn/macd-and-trend-strength/","json":"https://alysly.com/json/learn/macd-and-trend-strength/index.json","lang":"en-US","title":"MACD and ADX: Measuring Momentum and Trend Strength","description":"How MACD derives momentum from two averages, what the histogram shows, and why ADX measures the strength of a trend rather than its direction.","published":"2026-08-02T15:41:33+02:00","modified":"2026-09-28T12:19:59+02:00","alternates":[{"lang":"de-DE","url":"https://alysly.com/de/lernen/macd-und-trendstaerke/","json":"https://alysly.com/json/de/lernen/macd-und-trendstaerke/index.json"}],"about":"Machine-readable version of the page at url. It contains the text, tables and key figures published there, but not the interactive charts and tools.","breadcrumb":[{"name":"Investing & Trading Basics","url":"https://alysly.com/learn/"},{"name":"Level 2","url":"https://alysly.com/learn/#level-2"},{"name":"MACD and Trend Strength","url":"https://alysly.com/learn/macd-and-trend-strength/"}],"content":[{"type":"paragraph","text":"Level 2 Patterns & Indicators · Part 7/9"},{"type":"heading","level":1,"text":"MACD and Trend Strength"},{"type":"paragraph","text":"By Alexander Bock, founder and data analyst","links":[{"text":"Alexander Bock","href":"https://alysly.com/about/"}]},{"type":"paragraph","text":"MACD combines two ideas from the previous articles: it is built from moving averages, but it behaves like an oscillator."},{"type":"heading","level":2,"id":"construction","text":"Construction"},{"type":"paragraph","text":"It has three parts:"},{"type":"list","ordered":false,"items":["The MACD line is the difference between two exponential averages, by convention 12 and 26 periods.","The signal line is a 9-period EMA of the MACD line.","The histogram is the difference between the two lines."]},{"type":"image","src":"https://alysly.com/img/ta/macd.3f42b456fd9918f5867498488a317e39378f0346d0b46dbbf6010b9e54006fee.webp","alt":"MACD with signal line and histogram below the price series"},{"type":"paragraph","text":"MACD is the difference between two exponential averages; the signal line is its smoothing. (1) The histogram shows the gap between the two lines — it turns before they cross, making it the faster but noisier part. (2) The zero crossing corresponds to the two underlying averages crossing. MACD measures change in momentum, not price level — the same reading means different things for quiet and volatile instruments."},{"type":"paragraph","text":"Because the line is a difference, it does not measure the price level. It measures the distance between the short and the long average, which is the change in momentum. A rising MACD means the trend is speeding up. A falling MACD while prices still rise means the move is slowing down."},{"type":"heading","level":2,"id":"the-three-usual-readings","text":"The Three Usual Readings"},{"type":"list","ordered":true,"items":["Signal line crossover. The fastest but least reliable signal. In sideways phases it flips constantly.","Zero crossing. The same thing as the two underlying averages crossing. Slower and steadier.","Divergence with price. The same observation as with the RSI, and with the same limits."]},{"type":"paragraph","text":"The histogram turns before the lines do, so it is the fastest but also the noisiest part. Using it on its own means trading the second derivative of the price – and inside the noise that is barely different from zero."},{"type":"heading","level":2,"id":"the-scaling-problem","text":"The Scaling Problem"},{"type":"paragraph","text":"One practical point is missing from most descriptions: MACD is not normalized. Its value depends on the price level and the volatility of the instrument. A MACD of 2.5 means something completely different for a stock at 30 than for an index at 18,000."},{"type":"paragraph","text":"Two things follow. MACD values cannot be compared across instruments, and fixed thresholds are meaningless. Only the path within the same instrument is comparable."},{"type":"heading","level":2,"id":"adx-strength-without-direction","text":"ADX: Strength Without Direction"},{"type":"paragraph","text":"The average directional index measures how strong a trend is, without saying which way it runs. Values below roughly 20 count as trendless, values above 25 as trending. Those boundaries are convention, not measurement."},{"type":"paragraph","text":"Its use is as a filter. Almost every indicator works either in trends or in ranges, never in both. A measure of strength answers the question that comes first: which of the two states are you in, and therefore which tool applies at all."},{"type":"paragraph","text":"The limit is the same as everywhere else: ADX rises after a trend has started. It confirms, it does not announce."},{"type":"heading","level":2,"id":"the-real-lesson-of-this-chapter","text":"The Real Lesson of This Chapter"},{"type":"paragraph","text":"Every indicator in this level – averages, RSI, MACD, ADX – is a function of the same price series. They add no information; they only present existing information in a different form."},{"type":"paragraph","text":"Two things follow from that. Five indicators in one chart do not increase your certainty. They create apparent confirmation out of measures that are highly correlated with each other. And no indicator can show something that is not already in the price series. The question is therefore never which indicator is right, but which property of the series you want to see."},{"type":"paragraph","text":"How strongly different instruments and measures really move together can be measured. The correlation matrix does exactly that for markets.","links":[{"text":"correlation matrix","href":"https://alysly.com/tools/correlations/"}]},{"type":"heading","level":2,"id":"next","text":"Next"},{"type":"paragraph","text":"A measure with no direction at all that is still immediately useful: volatility."},{"type":"list","ordered":false,"items":[{"text":"Previous Oscillators: RSI and Stochastics","href":"https://alysly.com/learn/oscillators/"},{"text":"Next Measuring Volatility: Bollinger and ATR","href":"https://alysly.com/learn/volatility/"}]},{"type":"heading","level":2,"text":"Indices"},{"type":"table","caption":"Indices, performance over the selected period","columns":["Index","1M"],"rows":[[{"text":"Dow Jones","href":"https://alysly.com/markets/indices/dow-jones/"},{"text":"+1.0%","data":{"m1":"+1.0%","m3":"-4.3%","m6":"+4.9%","ytd":"+7.6%","max":"+30.0%"}}],[{"text":"S&P 500","href":"https://alysly.com/markets/indices/sp500/"},{"text":"-2.6%","data":{"m1":"-2.6%","m3":"-2.2%","m6":"+4.2%","ytd":"+10.6%","max":"+35.6%"}}],[{"text":"MSCI World","href":"https://alysly.com/markets/indices/msci-world/"},{"text":"-2.0%","data":{"m1":"-2.0%","m3":"-2.4%","m6":"+3.7%","ytd":"+10.0%","max":"+35.0%"}}],[{"text":"MSCI ACWI","href":"https://alysly.com/markets/indices/msci-acwi/"},{"text":"-3.3%","data":{"m1":"-3.3%","m3":"-3.0%","m6":"+2.3%","ytd":"+10.2%","max":"+41.5%"}}]]},{"type":"heading","level":2,"text":"ETFs"},{"type":"table","caption":"ETFs, performance over the selected period","columns":["Fund","1M"],"rows":[[{"text":"SPDR S&P 500 ETF Trust SPY","links":[{"text":"SPDR S&P 500 ETF Trust","href":"https://alysly.com/markets/etfs/us/spy/"}]},{"text":"-2.6%","data":{"m1":"-2.6%","m3":"-2.2%","m6":"+4.2%","ytd":"+10.6%","max":"+35.6%"}}],[{"text":"Vanguard S&P 500 ETF VOO","links":[{"text":"Vanguard S&P 500 ETF","href":"https://alysly.com/markets/etfs/us/voo/"}]},{"text":"-2.6%","data":{"m1":"-2.6%","m3":"-2.2%","m6":"+4.2%","ytd":"+10.6%","max":"+34.1%"}}],[{"text":"iShares Core MSCI World UCITS ETF USD (Acc) EUNL","links":[{"text":"iShares Core MSCI World UCITS ETF USD (Acc)","href":"https://alysly.com/markets/etfs/ishares-core-msci-world-ucits-etf-usd-acc/"}]},{"text":"-2.0%","data":{"m1":"-2.0%","m3":"-2.3%","m6":"+4.3%","ytd":"+10.6%","max":"+487.5%"}}],[{"text":"Xtrackers MSCI Emerging Markets UCITS ETF 1c XMME","links":[{"text":"Xtrackers MSCI Emerging Markets UCITS ETF 1c","href":"https://alysly.com/markets/etfs/xtrackers-msci-emerging-markets-ucits-etf-1c/"}]},{"text":"-9.4%","data":{"m1":"-9.4%","m3":"-4.1%","m6":"-3.3%","ytd":"+14.0%","max":"+93.0%"}}]]},{"type":"heading","level":2,"text":"Stocks"},{"type":"table","caption":"Stocks, performance over the selected period","columns":["Stock","1M"],"rows":[[{"text":"NVIDIA Corporation NVDA","links":[{"text":"NVIDIA Corporation","href":"https://alysly.com/markets/stocks/nvidia-corporation/"},{"text":"United States","href":"https://alysly.com/markets/stocks/browse/?country=United%20States"}]},{"text":"-13.5%","data":{"m1":"-13.5%","m3":"-2.5%","m6":"+5.2%","ytd":"+10.8%","max":"+62.2%"}}],[{"text":"Apple Inc. AAPL","links":[{"text":"Apple Inc.","href":"https://alysly.com/markets/stocks/apple-inc/"},{"text":"United States","href":"https://alysly.com/markets/stocks/browse/?country=United%20States"}]},{"text":"-0.3%","data":{"m1":"-0.3%","m3":"+7.3%","m6":"+16.8%","ytd":"+22.1%","max":"+45.8%"}}],[{"text":"Tesla Inc. TSLA","links":[{"text":"Tesla Inc.","href":"https://alysly.com/markets/stocks/tesla-inc/"},{"text":"United States","href":"https://alysly.com/markets/stocks/browse/?country=United%20States"}]},{"text":"+5.2%","data":{"m1":"+5.2%","m3":"+21.7%","m6":"+2.3%","ytd":"-11.4%","max":"+65.3%"}}]]},{"type":"paragraph","text":"Data note 1","href":"#dn-1"},{"type":"heading","level":2,"text":"More Studies"},{"type":"list","ordered":false,"items":[{"text":"Jul 21, 2026 Collectibles ×5.4 for the same cards, matched-model index, Mar 2022 – Aug 2026 Is the Pokémon Card Market in a Bubble? 4,159 Sales Analyzed Prices for PSA-graded cards multiplied. Measured on the same cards they rose 438%, while the raw median shows 786% because pricier cards came up for sale later.","href":"https://alysly.com/analysis/pokemon-card-market-bubble/"},{"text":"May 19, 2026 Crypto 45.6% Bitcoin’s annualized volatility, Jul 2024 – Sep 2026 Bitcoin in Investment Portfolios: The Real Numbers Bitcoin is calmer than it was and still about three times as volatile as the stock market. It moves with stocks, not with gold.","href":"https://alysly.com/analysis/bitcoin-investment-portfolios/"},{"text":"Mar 17, 2026 Wealth €1.2m needed for €3,000 a month indefinitely at a 3% real return Living Off Your Returns: What It Really Takes The capital you need is arithmetic. The return you assume is a guess, and it can triple the answer.","href":"https://alysly.com/analysis/living-off-returns/"}]},{"type":"paragraph","text":"View all studies","href":"https://alysly.com/analysis/#studies"},{"type":"heading","level":2,"text":"Learn"},{"type":"list","ordered":false,"items":[{"text":"Measuring Volatility: Bollinger and ATR Bollinger, ATR, squeeze – volatility drives stops, not direction.","href":"https://alysly.com/learn/volatility/"},{"text":"Testing a Pattern From shape to testable rule – and the traps along the way.","href":"https://alysly.com/learn/testing-a-pattern/"}]},{"type":"paragraph","text":"Course overview","href":"https://alysly.com/learn/"},{"type":"paragraph","text":"Updated Sep 28, 2026 · Content and figures checked Oct 19, 2026"},{"type":"heading","level":2,"id":"note-legend-h","text":"Data Notes"},{"type":"paragraph","text":"All calculations run automatically and are not investment advice."},{"type":"list","ordered":true,"items":[{"id":"dn-1","text":"Returns computed automatically from the price series, excluding dividends, taxes and costs."}]},{"type":"paragraph","text":"Data and methodology: Alysly · Responsible for content: Alexander Bock","links":[{"text":"Alysly","href":"https://alysly.com/methodology/"},{"text":"Alexander Bock","href":"https://alysly.com/about/"}]},{"type":"paragraph","text":"View all data notes","href":"https://alysly.com/notes/"}],"structured_data":[{"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://alysly.com/#org","name":"Alysly","url":"https://alysly.com/","logo":{"@type":"ImageObject","url":"https://alysly.com/img/icon-512.png","width":512,"height":512},"description":"Data-driven insights, transparent analysis and powerful tools for long-term investors.","email":"mail@alysly.com","contactPoint":{"@type":"ContactPoint","contactType":"customer support","email":"mail@alysly.com","availableLanguage":["de","en"]},"address":{"@type":"PostalAddress","addressLocality":"Haltern am See","postalCode":"45721","addressCountry":"DE"},"founder":{"@id":"https://alysly.com/#founder"},"sameAs":["https://www.linkedin.com/company/alyslycom/","https://www.youtube.com/@alyslycom","https://x.com/alyslycom"],"publishingPrinciples":"https://alysly.com/methodology/"},{"@type":"Person","@id":"https://alysly.com/#founder","name":"Alexander Bock","jobTitle":"Founder and data analyst","url":"https://alysly.com/about/","sameAs":["https://www.linkedin.com/in/abxk/"]},{"@type":"WebSite","@id":"https://alysly.com/#site","url":"https://alysly.com/","name":"Alysly","alternateName":"Alysly Investment Analysis","inLanguage":"en-US","publisher":{"@id":"https://alysly.com/#org"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://alysly.com/markets/stocks/browse/?q={search_term_string}"},"query-input":"required name=search_term_string"}},{"@type":"WebPage","@id":"https://alysly.com/learn/macd-and-trend-strength/#webpage","url":"https://alysly.com/learn/macd-and-trend-strength/","name":"MACD and Trend Strength – Alysly","description":"How MACD derives momentum from two averages, what the histogram shows, and why ADX measures the strength of a trend rather than its direction.","inLanguage":"en-US","isPartOf":{"@id":"https://alysly.com/#site"},"dateModified":"2026-09-28T12:19:59+02:00","publisher":{"@id":"https://alysly.com/#org"},"mainEntity":{"@id":"https://alysly.com/learn/macd-and-trend-strength/#entity"},"primaryImageOfPage":{"@type":"ImageObject","url":"https://alysly.com/img/ta/macd-og.9b3a610c5ea3ea03592c9e1d4641c08c48bf47243078746f84ec77325fb5c6b5.png","width":1200,"height":630}}]},{"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Investing & Trading Basics","item":"https://alysly.com/learn/"},{"@type":"ListItem","position":2,"name":"MACD and Trend Strength"}]},{"@context":"https://schema.org","@type":"Article","@id":"https://alysly.com/learn/macd-and-trend-strength/#entity","headline":"MACD and Trend Strength","description":"How MACD derives momentum from two averages, what the histogram shows, and why ADX measures the strength of a trend rather than its direction.","inLanguage":"en-US","mainEntityOfPage":"https://alysly.com/learn/macd-and-trend-strength/","image":[{"@type":"ImageObject","height":630,"url":"https://alysly.com/img/ta/macd-og.9b3a610c5ea3ea03592c9e1d4641c08c48bf47243078746f84ec77325fb5c6b5.png","width":1200},{"@type":"ImageObject","height":680,"url":"https://alysly.com/img/ta/macd.3f42b456fd9918f5867498488a317e39378f0346d0b46dbbf6010b9e54006fee.webp","width":1280}],"isPartOf":{"@type":"CreativeWorkSeries","name":"Investing & Trading Basics","url":"https://alysly.com/learn/"},"educationalLevel":"Level 2","author":{"@id":"https://alysly.com/#founder"},"publisher":{"@id":"https://alysly.com/#org"},"datePublished":"2026-08-02T15:41:33+02:00","dateModified":"2026-09-28T12:19:59+02:00"}],"notice":"© 2026 Alysly.com. Not investment advice. All data without guarantee. Financial information is analyzed and presented partly with AI assistance."}