MACD basic profitability tips


in the ex forextradingbrokerwebsiteting technical analysis software, forextradingwebsiteonline common parameters are fast smoothing moving average of 12, slow smoothing moving average parameters of 26 In addition, MACD has an auxiliary indicator - the bar (BAR) in most futures technical analysis software, the bar is colored, below the 0 axis is green, above the 0 axis is red, the former The former represents a weaker trend, the latter represents a stronger trend Below we talk about the use of MACD indicators should follow the basic principles: 1, when the DIF cashback forex DEA are above the 0 axis, belongs to the long market, DIF forex trading site from the bottom up through the DEA line is a buy signal DIF line from the top down through the DEA line, if the value of the two lines are still running above the 0 axis, can only be considered a short back down, and can not determine the trend turn, whether to sell at this time also need to use other indicators to comprehensive judgment 2, when the DIF and DEA is below the 0 axis, belongs to the short market DIF line from the top to cross the DEA line is a sell signal, DIF line from the bottom to cross the DEA line, if the value of the two lines are still running below the 0 axis, can only be regarded as a short-lived rebound, and can not determine the trend Turn, whether to buy at this time also need to use other indicators to comprehensive judgment 3, columnar line contraction and amplification in general, the continued contraction of the columnar line indicates that the strength of the trend is gradually weakening, when the color of the columnar line changes, the trend to determine the turn but in some of the time period is not long MACD indicators, this view is not completely valid 4, the pattern and divergence MACD indicators also Emphasis on patterns and divergence phenomenon when the pattern of the MACD indicator DIF line and MACD line to form a high bearish pattern, such as head and shoulders, double-headed, etc., should remain vigilant; and when the pattern of the MACD indicator DIF line and MACD line to form a low bullish pattern, should be considered for buying in the judgment of the pattern of the DIF line as the main, MACD line as a supplement when the price continues to rise, while the MACD indicator When the price continues to fall, while the MACD indicator is out of a wave than a wave of low trend, meaning that the top divergence appears, indicating that the price will likely turn down soon, when the price continues to fall, while the MACD indicator is out of a wave than a wave of trend, meaning that the bottom divergence phenomenon appears, indicating that the price will soon end the decline, turn up 5, the bull market indicators will be distorted when the price is not top-down or bottom-up operation When the price is not running from above or below, but to maintain the horizontal direction of movement, we call it a bull market, at this time false signals will be generated in the MACD indicator, the indicator DIF line and MACD line crossover will be very frequent, while the collection and release of the column line will also appear frequently, the color will often turn from green to red or from red to green, at this time the MACD indicator is in a state of distortion, the use of value correspondingly reduced with the DIF curve shape for Analysis, mainly using the principle of divergence of indicators specifically: If the direction of the DIF diverges from the direction of the stock price, it is time to take specific action but, according to the above principles to guide the actual operation, the accuracy is not satisfactory after practice, exploration and summary, the integrated use of the 5-day, 10-day average price line, 5-day, 10-day average volume line and MACD, its accuracy is greatly improved