What is MACD indicator?

The MACD in the stock is a technical indicator, known as the moving average of dissimilarity, is the calculation of a period of time, the stock price of the fast and slow smoothing moving average, the difference between the two again after smoothing, according to which the study of buying and selling of the actual, is the investor's most commonly used and one of the technical indicators.

Simple to understand is that the MACD indicator from negative to positive, this time you can buy. When the MACD indicator from positive to negative, this time you can sell. If the MACD indicator and the amplitude of the change, that the current stock market has a larger trend shift. macd is based on the advantages of moving averages of the development of tools, mainly the use of long and short lines of two smooth averages, calculated between the two values of the difference between the two. macd can be removed from the simple moving averages of often false signals, but also retains the advantages of the moving averages. When the MACD from negative to positive, is a buy signal, when the MACD from positive to negative, is a sell signal.

This trend indicator has an amazing accuracy when used to determine trend changes, oscillators, bottoms and tops. The bars that appear in the positive area are the red area lines and the bars that appear in the negative area of the MACD are the green bars. The red bar is a signal to go long. When the red bar increases and lengthens, it indicates that the long market will continue. When the red bar line decreases and shortens, it indicates that the stock price may fall at any time. Green bar chart is a short signal, when the green bar chart lengthened, indicating that the short market will continue, and vice versa, indicating that the stock price will be at any time to stop falling or bottoming out.

: MACD has a zero axis: this is the big joint of this indicator. The first look should be to look at him first. See whether the fast and slow lines are above the zero axis or below the zero axis. If in the zero axis below, then he is downtrend. If you are trapped, every golden cross is an opportunity to escape. If you rigidly follow the golden cross to buy, it is completely wrong to do. If you are empty position resolutely can not go in. If it is above the zero axis, across the zero axis is when the trend is turned, so below the zero axis is called a rebound, above the zero axis is called a reversal. According to the parameters of the software self-defined, the zero axis is actually the 20-day line.