MACD Metals Trading Strategies
- MACD Fast Line and Signal Line
- MACD Buy and Sell Trading Signals
- MACD Whipsaws Fake Out Signals
- Generating Center Line Crossover Trading Signals
- MACD Classic Bullish and Bearish Divergence
- MACD Hidden Bullish and Bearish Divergence
- MACD Summary
Bullish & Bearish Trading Signals
The MACD indicator is one of the most widely & oftenly used metals technical indicators available. MACD technical indicator is a momentum oscillator with some metals trend following characteristics.
MACD is one of the most popular indicators used in metal trading analysis. MACD indicator is used to generate metal signals using crossovers.
MACD plots the divergence and convergence of moving averages. MACD indicator is constructed using moving average analysis. Moving Average Convergence/Divergence is a trend-following metals indicator. MACD indicator shows the correlation between two moving averages.
One moving average is of a shorter period & the other for a longer period of metals price bars.
MACD Metal Indicator - MACD Metal Technical Indicator Technical Analysis
MACD indicator has a zero center-line: values above zero line are bullish while those below zero are bearish.
In an upwards metals trend the shorter MACD line rises faster that the longer MACD line this creates a gap. In addition as long as the MACD indicator is above the center-mark the metals trend is still bullish as illustrated below.
Do not sell as long as the MACD Metals Technical Indicator is above the Center Mark - this is bullish territory and it does not matter how it is moving as long as it is above the zero center mark, as shown on the metal examples illustrated & described below.
MACD Metals Technical Indicator Above Zero Mark - Bullish Trading Signal
In a downwards metals trend the shorter MACD line falls faster than the longer MACD line this creates a gap. In addition as long as the indicator is below the center-mark the metals trend is still bearish as illustrated below.
Do not buy as long as the MACD Metals Technical Indicator is below the Center Mark - this is bearish territory and it does not matter how it is moving as long as it is below the zero center mark, as shown on the metal examples illustrated & described below.
MACD Metals Technical Indicator Below Zero Center Line Mark - Bearish Trading Signal
When the metals trend is about to reverse the MACD lines begin to move closer to each other, thus closing the gap.
