@retinue
Moving averages (MA) help smooth out price data and identify the prevailing trend, while the MACD (Moving Average Convergence Divergence) measures momentum and potential reversals. When the MACD crosses above its signal line, it suggests bullish momentum, especially if the price is above a key moving average (e.g., the 50-day MA). Conversely, when the MACD crosses below, it signals bearish momentum. By using both tools together, traders can confirm trends and momentum shifts, helping them make more informed decisions about when to enter or exit the market.