MACD Indicator Crossover Signals

MACD centerline crossovers generate signals using the center line mark. The sentiment of the trading market can be confirmed using the MACD centerline crossovers. MACD crossover above the centerline mark generates bullish market sentiment while crossover below the centerline generates bearish market sentiment.

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

Using the chart in the trading example illustration explained and illustrated below, when MACD fastline crossed below the zero center line, the sell signal was confirmed and the trading market sentiment changed to bearish - downward trend.

Also in the trading example illustration explained & illustrated below when MACD fast line later crosses above zero center line, a buy signal was generated and the trading market sentiment changed to bullish - upward trend.

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

Oscillation of the MACD

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

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

Also in a strong downtrend market its better to sell, because trading prices will stay in the oversold region for a long time.

Over-bought levels occur way above zero mark while over-sold conditions occur way below the zero line.

MACD Over-bought Region - Trend Continuation Signal

More Topics and Tutorials:

Trade Stock Indices

MACD Indicator Crossover Signals

Oscillation of the MACD