Learn the stock market › Indicators › Lesson 7 of 7
When indicators disagree
| State | Of days | Had risen after three months | On average |
|---|---|---|---|
| Both point up | 41% | 64% | +6.0% |
| Both point down | 30% | 65% | +6.7% |
| RSI over 50, MACD under its signal line | 19% | 64% | +6.2% |
| RSI under 50, MACD over its signal line | 10% | 66% | +7.1% |
| All days | 100% | 64% | +6.3% |
How we compared them
Both measures can be read as up or down. RSI over 50 means rises have been larger than falls over the last 14 days. MACD over its signal line means MACD has been rising lately. The table shows every trading day for the 20 largest US companies since 2000, with what the stock did three months later.
They disagree on 29% of days. Right now 4 of the 20 companies do.
Why they disagree
They answer different questions. RSI is about how the price moved over the last 14 days. MACD compares two averages and asks whether the gap between them is growing. A price that has risen for a long time but started to level off can have RSI over 50 and MACD under its signal line at once.
Amazon is an example. On Oct 28, 2026, RSI was 50.
MACD was −0.32 and the signal line 0.15, so it was under, while RSI sat over 50.
Overbought, while MACD points up
At the extremes, they mostly agree about what has happened. When RSI was over 70, MACD was over its signal line on 92% of days, and when RSI was under 30, MACD was under on 94%.
The reading is what differs. The same day can be called overbought with RSI and rising speed with MACD. Both describe the same rise in different words.
Does it matter which state they are in?
After three months, the stock had risen about as often from all four states. The differences against all days can't be told apart from chance. So agreeing gave no different result from disagreeing.
These are today's largest companies, so they recovered from every fall, which is why stocks have risen so often from every state.
More indicators aren't more evidence
RSI, MACD, the stochastic oscillator and Bollinger Bands all use the same prices. So three lines pointing the same way aren't three independent signs, just the same move measured three times. Measures built on something other than the price, such as key ratios or a report, add something else.
Test yourself
RSI is under 50 and MACD is over its signal line. What does that mean?
More numbers are on the Amazon stock page.