Forex technical analysis indicators: MACD general judgment method
 
The MACD indicator is a well-known analytical tool for the vast majority of investors in the market. However, in the specific application, investors may feel that there are many uncertainties in the accuracy, effectiveness, and operability of the use of the MACD indicator. Using the analysis methods and techniques of the MACD indicator learned from the book to study foreign exchange trends, the conclusions drawn are often very different from the actual trends, and even the opposite results will be obtained. The main reason for this is that most of the books on technical analysis in the market about MACD are limited to the surface level, only introducing the general analysis principles and methods of MACD, and some specific connotations and analysis of MACD analysis indicators The introduction of techniques is rarely involved. Therefore, based on the introduction of the general research and judgment skills and analysis methods of the MACD indicator, our company will elaborate on the special research and judgment principles and functions of MACD.

The general research criteria of the MACD indicator are mainly around the fast and slow moving averages and the status of the red and green bars and their patterns. The general analysis methods mainly include the four major aspects of DIF and MACD values ​​and their positions, the intersection of DIF and MACD, the contraction of the red column and the shape of the MACD graph.

DIF and MACD values ​​and line positions

  1. When both DIF and MACD are greater than 0 (that is, they are shown above the zero line on the graph) and move upward, it is generally indicated that the market is in a long market and can buy or hold positions;
  2. When both DIF and MACD are less than 0 (that is, they are shown below the zero line on the graph) and move down, it is generally indicated that the market is in a short market and can be sold or wait-and-see.
  3. When both DIF and MACD are greater than 0 (that is, they are shown above the zero line on the graph) but both are moving downwards, it is generally indicated that the foreign exchange market is at a low tide, and the market will fall, and you can sell and wait and see;
  4. When both DIF and MACD are less than 0 (that is, they are shown below the zero line on the graph), but when moving upwards, it is generally indicated that the market is about to start, foreign exchange will rise, and you can buy or hold positions to rise.

The intersection of DIF and MACD

  1. When both DIF and MACD are above the zero line, and DIF breaks through MACD, it indicates that the market is in a strong position, and the price will rise again. You can buy foreign exchange or hold stocks to rise. This is the MACD indicator “Gold A form of “crossover”.
  2. When both DIF and MACD are below the zero line, and DIF breaks through MACD upwards, it indicates that the market is about to turn stronger, the price decline has ended and the decline has ended, and you can start buying foreign exchange or holding. This is the MACD indicator. Another form of “Golden Cross”.
  3. When both DIF and MACD are above the zero line, but DIF breaks down MACD, it indicates that the market is about to change from strong to weak, and the price will fall sharply. A form of “death cross” of the MACD indicator.
  4. When both DIF and MACD are above the zero line, and DIF breaks through the MACD, it indicates that the market will enter the extremely weak market again, the price will fall, and it can be sold or wait-and-see. This is the MACD indicator “death cross” Another form.