How to Read MACD and RSI: Trend and Momentum Basics

MACD and RSI are calculated from historical prices. They organize trend and momentum information but should be used with price structure, timeframe, and risk controls.

What Does MACD Show?

MACD usually contains a fast line, a slow line, and a histogram. Crossovers and histogram changes have different meanings in trends and ranges, so a crossover alone does not determine direction.

Three Ways to Read MACD

• Check whether the lines are above or below zero for directional context.
• Watch whether the histogram expands or contracts to assess momentum.
• Compare new price highs or lows with the indicator to identify possible divergence.

What Does RSI Show?

RSI describes momentum on a 0–100 scale. Readings above 70 are often called overbought and below 30 oversold, but strong trends can remain at extreme levels for extended periods.

Why Compare Multiple Timeframes?

Short-timeframe indicators react faster and contain more noise, while longer timeframes are steadier but slower. Use larger timeframes for context and consistent settings when comparing symbols.

Managing Indicators on the Chart

CoinTools event strategy and simulator charts load MACD and RSI by default. Use Indicators to add or remove available studies. The current browser restores the latest configuration.