MACD is called the exponential smoothing average convergence and divergence. It is developed from the double exponential moving average. It is composed of the fast exponential moving average (EMA) minus the slow exponential moving average. The meaning of MACD Basically the same as a double moving average, but easier to read. When MACD turns from negative to positive, it is a buy signal. When MACD turns from positive to negative, it is a sell signal. When MACD changes at a large angle, it means that the gap between the fast moving average and the slow moving average widens very quickly, which represents a change in the general market trend.

Basic usage

1. MACD Golden Cross: DIFF breaks through DEA ??from bottom to top, which is a buy signal.

2. MACD dead cross: DIFF breaks through DEA ??from top to bottom, which is a sell signal.

3. MACD green turns red: MACD value changes from negative to positive, and the market turns from short to long.

4. MACD red to green: MACD value changes from positive to negative, and the market turns from long to short.

5. When DIFF and DEA are both positive, that is, when both are above the zero axis, the general trend is a bull market. If DIFF breaks through DEA ??upward, it can be used as a buy signal;

6. When both DIFF and DEA are negative, that is, when they are both below the zero axis, the general trend is a short market, and DIFF falls below DEA, which can be used as a sell signal;

7. When the DEA line and the K-line trend When a divergence occurs, it is a reversal signal;

8. DEA has a higher error rate when consolidating the situation, but if combined with RSI and KD indicators, it can make up for its shortcomings.