MACD Indicator Crossover Signals

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

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

Using the chart in the example below, when MACD fast line crossed below the zero center mark, the sell signal was confirmed and the market sentiment changed to bearish - downwards trend.

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

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

Oscillation of the MACD Indicator

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

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

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

Overbought conditions occur above the zero line while oversold conditions occur way below the zero mark.

MACD Overbought Region - Trend Continuation Signal