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MACD Gold Trading Indicator Oscillator Gold Trading Technical Analysis Fast Line and Signal Line

MACD Gold indicator is used in various ways to give technical analysis information.

  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 gold trading signal.
  3. Oscillations can be used to indicate oversold and overbought regions
  4. Used to look for divergence between gold price and indicator.

 

Construction of MACD Gold Trading Indicator

The MACD gold trading indicator is constructed using two exponential moving averages and this gold trading technical indicator plots 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 gold trading indicator.

 

Summary of how MACD gold trading indicator is drawn

MACD uses 2 EMAs + a smoothing factor (12, 26 Exponential Moving Averages and 9 smoothing periods)

MACD gold trading technical indicator only plots two lines - the MACD fast line and the MACD signal line

 

MACD Lines - MACD Fast Line and MACD Signal Lines Gold Trading Signals

MACD Lines - MACD Fast Line and MACD Signal Lines Gold Trading Signals

 

  • The Fast Line is the difference between the 26 EMA and 12 EMA
  • The Signal line is the 9 period moving average of the MACD fast line.

 

Implementation of MACD Gold Trading Indicator

MACD gold trading 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 gold trading signals using the crossover trading strategy method.

 

There is also the MACD center-line which is also known as the zero mark and it is a neutral point between buyers and sellers trading the gold trading market.

 

Values above the center-mark are considered bullish gold trading signals while those below are bearish gold trading signals.

 

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

 

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