MACD Indicator Cross-over Signals

MACD center line cross-overs generate trading signals using the centerline mark. The sentiment of the market can be confirmed using MACD center line crossovers.

MACD Index crossover above the centerline mark generates bullish market sentiment while cross-over below the centerline generates bearish market sentiment.

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

Using the trade chart on the illustration put on display below, when MACD fast line crossed below the zero center line mark, sell signal was confirmed & the market sentiment changed to bearish - downward trend.

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

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

Oscillation of the MACD

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

The MACD is also used to show overbought & over-sold levels. When MACD reaches over-extended levels, then a index is overbought or oversold. However, in a strong upwards market trending Stock market prices will stay overbought in this case its better to buy the index.

Also in a strong down trending market its better to sell the index, because prices will stay in the over-sold region for a long time.

Overbought conditions/levels form way above the zero line while over-sold conditions/levels form way below the zero mark.

MACD Overbought Region - Stock Index Trend Continuation Signal

Get More Lessons & Courses:

Trade Stock Indices

MACD Indicator Cross-over Signals

Oscillation of the MACD