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MACD Technical Analysis Buy and Sell Gold Trading Signals

Since the MACD gold trading indicator uses 26 and 12 EMA to plot, we shall compare these two EMAs with the MACD indicator to determine how these buy and sell gold trading signals are generated.

MACD Gold Trading Indicator - Example of MACD Gold Technical Gold Trading Indicator

MACD Gold Trading Indicator - Example of MACD Gold Technical Gold Trading Indicator


The MACD gold trading indicator is a leading indicator meaning it generates gold trading signals that are leading compared to gold price action as opposed to lagging indicators that lag behind the gold trading price.

 

Buy Gold Trade

A buy gold trading trade is generated when there is a MACD fast line crosses above the signal line. However, as with any leading indicator these gold trading signals are prone to whipsaws/ fake outs.

 

To eliminate the whipsaws it's good to wait for confirmation of the buy or sell gold trading signals. The confirmation gold trading signal is when the two lines cross above the zero mark, when this happens the buy generated is a reliable gold trading signal.

 

In the gold trading example below, the Moving average gold trading indicator generated a buy gold trading signal, before gold price started to move up. But it wasn't until the MACD moved above the zero line that the buy gold trading signal was confirmed, and the Moving Averages also gave a crossover gold trading signal. From experience its always good to buy after both the MACD lines move above zero center line mark.

Where to Buy using MACD Gold Trading Indicator - Buy Gold Trading Signal

Where to Buy using MACD Gold Trading Indicator - Buy Gold Trading Signal

 

Sell Gold Trade

A sell gold trading signal is generated when there is a MACD fast line crosses below the signal line. However, just like the buy gold trading signal, these are also prone to whipsaws/ fake outs.

 

To eliminate the whipsaws its good to wait for confirmation of the sell gold trading signal. The confirmation is when the two lines cross below the zero mark, when this happens the sell generated is a reliable gold trading signal.

 

In the gold trading example below, the Moving average generated a sell confirmed after MACD moved below the zero line at the same time that the Moving Averages gave a crossover gold trading signal.

Where to Sell using MACD Gold Trading Indicator - Sell Gold Trading Signal

Where to Sell using MACD Gold Trading Indicator - Sell Gold Trading Signal

 

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