No Nonsense Indices MACD Technical Analysis

The MACD indicator was developed by Gerald Appel.

MACD Indices Indicator is one of the simplest and most commonly used indices indicators available. MACD Indices Indicator is a momentum oscillator with some indices trend following characteristics. The most popular technical analysis of MACD Indices Indicator first calculates the difference between two moving averages and plots that as the MACD Indices Indicator "Fast" line; A second MACD Indices Indicator "Signal" (trigger) line - Indices Trading Signal is then calculated from the resulting "Fast" line and plotted in the same frame as the MACD Indices Indicator "Fast" line. The "standard" MACD values for the "Fast" line are a 12-period exponential moving average and a 26-period exponential moving average and a 9-period exponential moving average for the MACD Indices Indicator "Signal" line.

Interpretation of MACD Stock Indices Indicator - No Nonsense Indices MACD Technical Analysis

MACD Indices Indicator is widely used as a indices trend following indicator and tends to work most effectively when measuring wide swinging stock indices market price movements. There are three basic techniques for using the MACD Indices Indicator to generate stock indices signals.

MACD Crossover Signals:

1. MACD Indices Indicator Fast line MACD Indices Indicator Signal line Crossover: A buy indices signal occurs when the MACD Fast line crosses above the MACD Signal line and a sell stock indices signal occurs when the MACD Fast line crosses below the MACD Signal line.

2. Fast line / Zero-Level Crossover: - No Nonsense Indices MACD Buy and Sell Indices Signal Indicator When the MACD Fast line crosses above zero center line mark a buy indices signal is given. Alternatively, when the MACD Fast line crosses below zero center line mark a sell indices signal is given.

MACD Divergence Indices Signal:

Indices divergences between the MACD indicator and stock indices price can prove to be a very effective indices trading strategy in identifying potential indices trend reversal and/or indices trend continuation points in stock indices price movement. There are several types of MACD indicator divergences:

MACD Classic Divergence

• MACD Bullish Divergence = Lower lows in stock indices price and higher lows in the MACD indicator
• MACD Bearish Divergence = Higher highs in stock indices price and lower highs in the MACD indicator

MACD Hidden Divergence

• MACD Bullish Divergence = Lower lows in MACD and higher lows in indices price
• MACD Bearish Divergence = Higher highs in MACD and lower highs in indices price

MACD indicator Overbought Oversold Levels:

The MACD indicator can be used to identify potential overbought and oversold levels in stock indices price movements. These MACD indicator overbought oversold levels are generated by comparing the distance between the shorter moving average and the longer moving average; if the shorter moving average separates dramatically from the longer moving average it may be a signal that stock indices price is over extending and the stock indices price will soon return to more realistic levels.

Implementation of MACD Indices Indicator

The MACD indicator Fast line is plotted as a solid blue line. The MACD indicator Signal line is plotted as a solid red line. A green histogram plot that represents the difference between the MACD Fast line and the MACD Signal line has also been included to make identifying MACD indicator crossover points easier.

No Nonsense Indices MACD Technical Analysis - No Nonsense Indices MACD Indices Strategy