MACD Metals Trading Indicator Oscillator Metals Analysis Fast-Line & Signal-Line
MACD Metals indicator is used in various ways to give technical analysis data.
- MACD center-line crosses indicate bullish or bearish markets: below zero is bearish, above zero is bullish.
- MACD Crossovers indicate a buy or sell metals trading signal.
- Oscillations can be used to indicate oversold & overbought regions
- Used to look for divergence between metals price and indicator.
Construction of MACD Technical Indicator
The MACD indicator is constructed using two exponential moving averages and this metals 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 technical indicator.
Summary of how MACD indicator is drawn
MACD uses 2 EMAs + a smoothing factor (12, 26 Exponential Moving Averages & 9 smoothing periods)
MACD indicator only plots two lines - the MACD fast line and the MACD signal line
MACD Lines - MACD Fast Line & MACD SignalLines Trading Signals
- The Fast-Line is the difference between the 26 Exponential Moving Average & 12 EMA
- The Signal Line is the 9 period moving average of the 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 metal signals using the crossover trading strategy method.
There is also the MACD center-line which is also known as zero mark & it's a neutral point between buyers & sellers trading the metals trading market.
Values above the center-mark are considered bullish metals trading signals while those below are bearish trading signals.
The MACD indicator being an oscillator indicator, oscillates above & below this center-line.
