IntermediateMAD Academy0:45Indicators
MACD Is Two Averages Wearing a Costume
Strip the histogram away and MACD is the distance between two moving averages — which explains everything it does well and everything it does badly.
0:45 · 6 scenes
This lesson is part of a MAD Academy plan.
What the Lesson Covers
- 0:00MACD looks like its own indicator. It is two moving averages, subtracted.
- 0:05The three parts. The line is one average minus another. The signal smooths the line. The bars are the gap.
- 0:14What a crossing is. A signal crossing says the gap between two averages just changed direction. That is all.
- 0:24Why it whipsaws sideways. With no trend the two averages sit on top of each other and the line crosses constantly.
- 0:32The part worth watching. Shrinking bars mean the averages are converging — the move is losing its push.
- 0:40Read the histogram as a speedometer, not as a buy button.
MAD AcademyYou hold No active plan
This section is part of MAD Academy
The whole course, with live boards to practice on. Learn the market properly.
What Academy includes
- Every training video the plan opens, all 305 lessons across 20 subjects
- A Start Here path for newcomers, and every subject's lessons in order from Foundations to Advanced
- Your progress, your trophies and your next lesson, tracked on your own Academy home
- Every concept guide, all 24 trading set-ups and the 151-term glossary
- The real-time Market Dashboard, Premium Scanner and Pro Charting, on the same feed every member plan reads
- Heatmap and sectors, inside the member platform with your lessons rather than beside it
- Unlimited watchlists, in the drawer on every tab and on the scanner and chart
- The real-time Market News Feed, narrowed to your own watchlist in one click
Not included
- No premium alerts, MAD Setups, alert archive or performance record
- No personalized dashboard: My Dashboard starts at Analysis Tools Only
- No research desk: Corporate Events and Institutional Ownership start at Analysis Tools Only
- No product tutorials or Deep-Dives, which come with Premium Membership
- No MCP Connector: connecting an AI app starts at Analysis Tools Only
Add MAD Academy
$39per month
or $279 per year (about $23.25 a month)
Start MAD AcademyPay yearly insteadOr get both
Premium Membership
$0for 5 days
then $149 per month, or $1,099 per year. Tools and Alerts together cost $188 a month bought separately.
Start 5 days freeCard required. After 5 days it is $149 per month or $1,099 per year until you cancel. First-time members only.
Educational content only. MadStockAlerts provides market commentary, research, and educational content. It is not personalized investment advice, and nothing here is a recommendation to buy or sell any security. Trading and investing involve substantial risk, including loss of capital. See the Risk Disclosure and Customer Agreement.
Educational content only. MadStockAlerts provides market commentary, research, and educational content. It is not personalized investment advice, and nothing here is a recommendation to buy or sell any security. Trading and investing involve substantial risk, including loss of capital. See the Risk Disclosure and Customer Agreement.