MACD crossover alerts

MACD — moving average convergence divergence — is one of the more durable momentum indicators. Crossovers between the MACD line and its signal line tend to mark inflection points in trend. Tickerbot watches the cross on every ticker, every five minutes.

What MACD is

MACD compares two exponential moving averages (typically the 12-day and 26-day) and plots the difference as a line. A second "signal line" (typically a 9-day EMA of the MACD) acts as a smoother. When the MACD line crosses above the signal line, momentum is shifting bullish. When it crosses below, momentum is shifting bearish. Both crosses are commonly used as entry and exit signals.

Why the cross matters more than the level

MACD values themselves are noisy — they bounce around constantly. The cross is the actual signal: the moment the line moves above or below the signal line. Tickerbot evaluates the cross as an edge transition and only fires once per cross, not every five minutes that the line is above (or below).

Combining with the bigger trend

MACD crosses are most useful when they confirm the larger trend rather than fighting it. A bullish cross on a stock already above its 200-day MA is far more reliable than a bullish cross on a stock in a downtrend.

Variants worth setting up

• Bearish MACD cross on any of your holdings (risk inverse)
• MACD cross paired with a volume spike
• MACD histogram turning positive (less precise but earlier than the line cross)
• MACD divergence — price makes a new high but MACD doesn't (exhaustion signal)