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MACD Indicator Oscillator Indicator Analysis FastLine & Signal-Line

MACD indicator is used in various ways to give trading analysis data.

  1. MACD center line crosses indicate bullish or bearish markets: below zero is bearish, above zero is bullish.
  2. MACD Crossovers indicate a buy or sell xauusd trade signal.
  3. Oscillations can be used to indicate oversold & overbought regions
  4. Used to look for divergence between xauusd price & indicator.

Construction of MACD

The MACD indicator is constructed using two exponential moving averages MAs and this gold indicator draws two lines. The two default exponential moving averages used are 12 and 26. Then a smoothing factor of 9 is also applied when drawing the MACD technical indicator.

Summary of how MACD indicator is drawn

MACD uses 2 EMAs + a smoothing factor (12, 26 Exponential MAs & 9 smoothing periods)

MACD indicator only plots two lines - the MACD fast line and the MACD signalline

How to Trade Gold with MACD Fast Line and MACD Signal Line Gold Strategies - MACD Technical XAUUSD Trading Indicator

MACD Lines - MACD Fast-Line and MACD SignalLines Trading Signals

  • The FastLine is the difference between the 26 Exponential Moving Average & 12 EMA
  • The Signal Line is the 9 period moving average of MACD fast line.

Implementation of MACD Indicator

MACD indicator implements the MACD line as a continuous line while the signal-line is implemented as a histogram. These two MACD LINES are then used to generate xauusd signals using the crossover strategy method.

There is also the MACD center-line which also is referred to as the zero mark & it's a neutral point between buyers & sellers trading the market.

Values above the center-mark are considered bullish signals while those below are bearish xauusd trade signals.

MACD indicator being an oscillator trading indicator, oscillates above and below this center line.

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