MACD Strategies
- MACD Fast Line and Signal-line
- MACD Buy and Sell Trading Signals
- MACD Signals for False Breakouts
- How to Spot Center Line Crossover Signals
- MACD Classic Bullish and Bearish Divergence Trade Setups
- How to Spot Hidden Bullish and Bearish Divergence with MACD
- Summary of MACD Indicator
MACD Centerline Cross-over
The MACD indicator stands out as one of the most frequently and widely utilized technical indicators available: it functions as a momentum oscillator while simultaneously exhibiting characteristics of a trend-following tool.
The MACD tool is one of the most well-known and liked tools used to study stocks. The MACD tool is used to make stock signals using points where lines cross.
MACD shows how moving averages(MAs) come together and move apart. The MACD indicator is made using Moving Average analysis. Moving Average Convergence/Divergence is a tool that follows trends. MACD shows the link between two MAs.
One moving average is of a shorter length and the opposite for an extended length of inventory charge bars.
MACD Indicator - MACD Indicator Analysis
The MACD indicator features a central line at zero: readings above this mark suggest bullish momentum, whereas readings below suggest bearish momentum.
During an uptrend, the short MACD line climbs faster than the long one, creating that familiar gap. As long as the MACD stays above the center line, you're still looking at a bullish trend - check out the example below.
Don't sell if the MACD Indicator is above the Center Line because this area is good for buying. It doesn't matter how it moves, as long as it stays above the zero center line, like in the pictures below.
MACD Indicator Above Zero Mark - Bullish Signal
In a downtrend, the short MACD line drops quicker than the long one, opening a gap. If it stays below the center line, the bearish trend continues.
Do not buy as long as the MACD Indicator is below the Center Line - this is bearish region and it doesn't matter how it's moving as long as it is below the zero center line, as shown on the illustrations shown below.
MACD Indicator Below Zero Center Line Mark - Bearish Trading Signal
When a trend is about to change and reverse, the MACD lines begin to converge, thereby reducing the gap between them.
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