The MACD indicator is also called the exponential smoothing moving average of similarity and difference, created by Gerald Apple. It is a technical analysis tool to study the timing of stock trading and track the trend of stock prices. MACD is a technical indicator that uses the aggregation and separation between the fast moving average and the slow moving average to make a judgment on the timing of buying and selling. It is a mid-line trend indicator with a certain lag; it will lose its effectiveness in the consolidation of the market.
Technical indicators are used by investors to determine the sniper target after using technical factors such as price, time and volume, and then use it as a reference for precise buying and selling points, so it has a certain precise positioning effect. Among all the technical indicators, the MACD indicator has the largest reference role, so it is also known as the king of indicators.
The MACD indicator is used by investors to determine the sniper target by using technical factors such as price, time and volume, and then use it as a reference for precise buying and selling points, so it has a certain role in precise positioning.
There are prices, time and volume first, and then indicators. Always use price, time and volume as the first element of analysis. Price comes first, and indicators come later. Most of the indicators are lagging. Technical indicators cannot be overly superstitious. Technical indicators can only be in a very limited subordinate, auxiliary and reference position, rather than as the main technical analysis method! If investors can’t understand this point, it will be difficult to become a powerful tool in the investment market.
MACD has clear technical signals and clear trend pointing meaning. Each cycle level MACD is a true manifestation of the stock price trend, but the shorter the cycle of the MACD, the higher the possibility of human control and the greater the possibility of distortion. Big. Therefore, it is recommended that investors use the MACD with a longer period as a reference for decision-making.
The trend value of MACD is not only reflected in its golden cross and death cross, but more importantly in its divergence. If the buying of the golden cross and the selling of the dead cross are taking advantage of the trend, then the effective top divergence short and the effective bottom divergence long is a rebound lute. The second golden cross zero red has strengthened our confidence in buying, while the second dead cross zero green has prompted us to accelerate our exit.