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MACD Crossover Signals

MACD centerline 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 centerline mark generates bullish market sentiment while crossover below the center line generates bearish market sentiment.

  • When the Fast Line 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 the center line 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 the center line crossover.
  • The Center-Line cross-over trading signals will be the best signals for confirming buy & sell signals.

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

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

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

Oscillation of MACD Indicator

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

MACD indicator is also used to reflect over-bought and over-sold levels. When the MACD reaches overextended levels, then gold is overbought or oversold. However, in a strong upwards trending market prices will stay over-bought 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.

Overbought conditions occur way above the zero line while oversold 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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