Field Guide to Trading Terms

Macd vs Rsi


Look-alike pair

Full entries: Macd · Rsi.

MACD and RSI are both momentum indicators, but the single difference that matters is what they measure: MACD compares two moving averages to show trend direction and strength, while RSI compares average gains to average losses to show how overbought or oversold price is. That core distinction drives every other difference in how they look and behave.

Side by side

MacdRsi
What it measuresThe relationship between two exponential moving averages (typically 12 and 26 periods) of price.The ratio of average gains to average losses over a set period (typically 14 periods).
Scale and rangeUnbounded; values fluctuate above and below zero with no fixed limits.Bounded between 0 and 100; values outside 30 and 70 are often considered oversold or overbought.
Field markA zero line with a histogram and two moving average lines (MACD line and signal line).A single line that oscillates between 0 and 100, often with horizontal lines at 30 and 70.
Typical signalsCrossovers of the MACD line and signal line, and divergences from price.Readings above 70 or below 30, and divergences from price.
Common settings12, 26, and 9 periods for the moving averages and signal line.14 periods for the lookback window.
Best used forIdentifying trend direction and potential reversals in trending markets.Identifying overbought or oversold conditions in ranging markets.

Which word to use

Use MACD when you want to gauge the strength and direction of a trend, and use RSI when you want to assess whether price has moved too far too fast and may be due for a pullback.