Trade Gold Trading

MACD Indicator Crossover Signals

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

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

Using the chart in the trading example shown & described 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 trading example illustrated and explained below when MACD fast line later crosses above zero center mark, a buy signal was generated & the market sentiment changed to bullish - upwards trend.

MACD Line Crossover Signals Strategies - MACD Indicator Line Crossover Signals Best Strategy

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

Oscillation of MACD Indicator

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

MACD indicator is also used to indicate over-bought & oversold levels. When the MACD reaches overextended levels, then gold is overbought or oversold. However, in a strong upwards trending market prices will stay overbought in this case it's better to buy.

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

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

MACD Line Crossover Signals Strategies - MACD Line Crossover Signal Best Strategies

MACD Overbought Region - Trend Continuation Signal

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