I have 3,yrs experience in crypto & 30+ yrs experience in stock market.
The MACD lines
The MACD lines, why indicating
In Binance trading charts, especially when using the MACD indicator, you'll often encounter three color-coded lines. These lines represent different aspects of the MACD analysis:
1. MACD Line (Main Line): This is usually the blue or green line on the chart. It represents the difference between the 7day and 25day Exponential Moving Averages (EMA). This line tracks the trend and shows momentum.
2. Signal Line: This is typically a orange line on the chart. It represents the 7-day EMA of the MACD line. It serves as a smoother version of the MACD line and is used to generate buy or sell signals.
When the MACD Line crosses above the Signal Line, it's often a bullish signal (suggesting a potential buy).
When the MACD Line crosses below the Signal Line, it's often a bearish signal (suggesting a potential sell).
3. Histogram: This is the bar graph (typically in green, red, or gray) that is plotted around the centerline (zero). The histogram represents the difference between the MACD Line and the Signal Line. It shows the strength of the trend:
If the histogram is above zero and growing, it indicates increasing bullish momentum.
If the histogram is below zero and growing, it indicates increasing bearish momentum.
If the histogram is shrinking, it suggests weakening momentum in the current trend.
Ok my respected followers,and square freands this is guideline to graph signals.
Questioned? Why these generate?
BINANCE have data,how many users order booked ,how many price,according to data generate lines
In summary:
Blue/Green line = MACD Line (momentum and trend direction).
Red/Orange line = Signal Line (smoothing for buy/sell signals).
Green/Red Histogram = Difference between MACD and Signal Line, indicating strength of momentum.
Also binance academy have tutorial in intermediate track,learn here,ok
