1 thought on “How to use MACD indicators for trend recognition”

  1. MACD is a technical tool developed based on the advantages of the mobile average. MACD absorbs the advantages of the mobile average. The use of a mobile average to judge the timing of trading is very effective when the trend is obvious, but if you encounter a cowhide consolidation, the signal sent is frequent and inaccurate. According to the MACD developed by the moving average principle, one removes the frequent fake signal defects of the mobile average, and the second can ensure the maximum results of the mobile average.
    The application
    1. MACD Golden Fork: DIF breaks the DEM from bottom to top to buy signals.
    2. MACD dead fork: DIF breaks through DEM from top to bottom to sell signals.
    3. MACD green to red: MACD value changes from negative, and the market has shifted from short to long.
    4. MACD red turns green: MACD value changes from positive and negative, and the market has changed from multi -head to short.
    The use techniques
    1. Diff and DEA are both positive, that is, when the zero axis is above the zero axis, the general trend is a long market. DIFF breaks the DEA upwards and can be bought.
    2. Diff and DEA are both negative, that is, when the zero axis is below the axis, the general trend is a short market. DIFF has fallen below DEA and can be sold.
    3. When the DEA cable and the K -line trend are back, it is a reversal signal.
    4. DEA is high in the market, but if you cooperate with RSI and KD, you can make up for the shortcomings appropriately.
    5. Analyze the MACD pillar diagram. When the positive changes, it is often instructed to sell, otherwise it is often a buy signal.
    parameter description
    DIF parameters -default value: 9 Fast EMA parameter -default value: 12 Slow EMA parameter -default value: 26
    At the same time, combined with a simulation disk to practice, this theory can be practiced quickly and effectively to master the skills. Simulation software can be used to simulate the stocks of bull stocks to try. Personally it feels good. There are many indicators in it. Each indicator is all indicators. Some explanations are how to use it. It will help you to use it. I hope to help you and wish you a happy investment!

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