MACD Strategy
- MACD Fast Line & Signal Line
- MACD Buy and Sell Signals
- MACD Whip-saws Fake-Out Signals
- Generating Center Line Crossover Signals
- MACD Classic Bullish & Bearish Divergence
- MACD Hidden Bullish & Bearish Divergence
- MACD Summary
Bullish and Bearish Trading Signals
MACD indicator is one of the most widely & commonly and often used indicators available. MACD indicator is a momentum oscillator trading with some trend following characteristics.
MACD technical indicator is one of the most popular indicators used in analysis. MACD indicator is used to generate signals using cross overs.
MACD plots the divergence and convergence of moving averages. MACD indicator is constructed using Moving Average analysis. MA Convergence/Divergence is a trend-following trading indicator. MACD indicator illustrates the correlation between 2 moving averages.
One moving average is of a shorter period and the other for a longer period of the price bars.
MACD Indicator - MACD Indicator Technical Analysis
MACD indicator has a zero centerline: values above the zero line are bullish while those below the zero are bearish.
In an upwards trend the shorter MACD line rises faster than longer MACD line this creates and forms a gap. In addition as long as MACD indicator is above the center line the trend is still bullish as illustrated below.
Do not sell as long as the MACD Indicator is above the Center Line Mark - this is bullish territory & it does not matter how it's moving as long as it is above the zero center mark, as shown on the example illustration shown & explained below.
MACD Indicator Above Zero Mark - Bullish Trading Signal
In a downwards trend the shorter MACD line falls faster than the longer MACD line this creates and forms a gap. In addition as long as the technical indicator is below the center line the trend is still bearish as shown below.
Do not buy as long as MACD Indicator is below the Center Line Mark - this is bearish territory and it does not matter how it is moving as long as it's below the zero center mark, as shown on the example illustration shown and explained below.
MACD Indicator Below Zero Center-Line Mark - Bearish Signal
When the trend is about to reverse the MACD lines start to move closer to each other, thus closing the gap.
More Tutorials & Topics:
- What is Bullish Gold Divergence Trading?
- How Do You Activate a MT5 Automated Trading Robot in MetaTrader 5 Software Platform?
- What are The Trading Hours for Gold?
- Divergence Trade Setups Summary Gold GOLD TRADING
- How Do You Trade MT5 Upwards Gold Channel in MetaTrader 5 Software Platform?
