The three core effects of MACD indicator include trend recognition, buy and sell point judgment, and multi-air Force analysis.
Trend recognition usually occurs in the following cases, which means that the stock price is on the upward trend
- The MACD indicator has a gold crossover above the 0 axis, and the DIF Express line is located above the DEA slow line
- The MACD indicator is lower than the divergence, that is, the stock price continuously hit a low, while the lower of the MACD indicator is a higher
- The two curves of the MACD indicator are tilted to the right, and the MACD-histogram is getting longer, and the callback is lower than a high
- When the stock price is in the downtrend, the drought of the MACD indicator is just the opposite of the above situation.
Point of sale Pre-award
- Since the MACD indicator is smoothed on the basis of the moving average, the MACD indicator finds a relatively lagging buy or sell signal compared to the EMA system, but also shields a large number of invalid signals, because of this, the MACD indicator is used to judge the trading point of the price band, rather than the super-short-term point of sale
- Typically, the following situation means that a better point of purchase or selling has occurred
- Buy some
- DIF fast line with DEA slow line with quality gold crossover
- Selling
- DIF fast line and DEA slow line with mass death crossover
Multi-Air Force analysis
- In the MACD indicator, the 0 axis is the dividing line of the strength of the multi-air Force
- The 0 axes and bars in the MACD indicator are relatively effective tools for judging the change of the multi-air force.
- The following situation means that the strength of the void will change.
- MACD-histogram from green to red (up to 0-axis from 0-axis), meaning empty-square-dominated
- When the MACD indicator bar is below the 0 axis, the bar is no longer elongated, but begins to gradually shorten, indicating that the void is dominant, but the force begins to weaken.
- When the MACD indicator bar is above the 0 axis, the bar is no longer elongated, but begins to gradually shorten, indicating that many people are dominant, but the force is beginning to weaken
Three core effects of MACD indicator
