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MACD Indicator Crossover Trading Signals

MACD Center line crossovers generate trading signals using the center line mark. The sentiment of the Stock Indices market can be confirmed using the MACD center line crossovers.

MACD Stock Indices crossover above the center line mark generates bullish Stock Indices market sentiment while crossover below the center line generates bearish Stock Indices market sentiment.

  • When the Fast line crosses below the MACD Line (not center mark) it shows Stock Indices market momentum is slowing - this is not a reversal Stock Indices signal or a sell Stock Indices signal, wait for center mark crossover.
  • When the Fast line crosses above the MACD Line (not center mark) it shows the Stock Indices market momentum is slowing - this is not a reversal Stock Indices trading signal or a buy Stock Indices trading signal, wait for center mark crossover.
  • The Center-Line crossover Stock Indices signals will be the best trading signals for confirming buy and sell Stock Indices signals.

Using the Stock Indices chart in the example below, when MACD fast line crossed below the zero center mark, the sell Stock Indices trading signal was confirmed and the Stock Indices market sentiment changed to bearish - downwards Stock Indices trend.

Also in the example below when MACD fast line later crosses above zero center mark, a buy Stock Indices trading signal was generated and the market sentiment changed to bullish - upwards Stock Indices trend.

How Do I Trade Index with MACD Crossover Signal Strategies? - MACD Indicator Crossover Trading Signal for Trading Stock Index

MACD Zero-Line Mark Crossover - Precisely When a Sell Signal and Buy Signal are Generated

Oscillation of the MACD Indicator

The MACD Stock Indices indicator is an oscillator indicator that moves up and down around a zero center line mark. The center-line is the neutral measurement, values above zero will indicate bullish Stock Indices market trend while values below indicate bearish Stock Indices market trend.

The MACD indicator is also used to indicate overbought and oversold levels. When the MACD reaches overextended levels, then a stock index is overbought or oversold. However, in a strong upward trending Stock Indices market prices will stay overbought in this case its better to buy the stock index.

Also in a strong down trending Stock Indices market its better to sell the stock index, because prices will stay in the oversold region for a long time.

Overbought conditions occur above the zero line while oversold conditions occur way below the zero mark.

How to Trade Index with MACD Crossover Signal Strategies - MACD Indicator Crossover Trading Signal for Trading Stock Indices

MACD Overbought Region - Stock Indices Trend Continuation Signal

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