Signals

MACD — Moving Average Convergence Divergence

Track trend shifts with fast/slow EMA convergence.

What it is

MACD compares fast and slow exponential moving averages and returns three values per timestamp: the MACD line, the signal line, and the histogram.

When to use it

Looking for bullish or bearish line crossovers.
Measuring whether momentum is accelerating or fading through the histogram.
Confirming trend direction alongside moving averages.

The maths

MACD line = EMA(12) - EMA(26), Signal line = EMA(9) of MACD, Histogram = MACD - Signal

What it tells you

A MACD line crossing above the signal line is bullish; below is bearish. The histogram shows the speed of convergence and divergence. Divergence from price can precede trend changes.

REST example

python

import os
import requests

response = requests.get(
  'https://api.financedata.com/v1/signals/MACD/AAPL',
  params={
      'start_date': '2025-01-01',
      'end_date': '2025-04-30',
      'fast': 12,
      'slow': 26,
      'signal_period': 9,
  },
  headers={'X-API-Key': os.environ['FDA_KEY']},
  timeout=30,
)
response.raise_for_status()
print(response.json())

MCP example

Tool call body

{
"name": "get_macd",
"arguments": {
  "symbol": "AAPL",
  "start_date": "2025-01-01",
  "end_date": "2025-04-30",
  "fast": 12,
  "slow": 26,
  "signal_period": 9
}
}

Agent prompt that triggers it

Run MACD for AAPL and summarize whether the latest line crossover is bullish or bearish.