MACDFS, called homodyne moving average, is developed from double exponential moving average. Subtract the fast exponential moving average (EMA 12) from the slow exponential moving average (EMA26) to get the fast DIF, and then use 2× (the 9-day weighted moving average DEA of the fast DIF-DIF) to get the MACDFS column.
The meaning of MACDFS is basically the same as that of double moving averages, that is, the dispersion and aggregation of fast and slow moving averages represent the current long and short state and the possible development trend of stock prices, but it is more convenient to read. When MACDFS turns from negative to positive, it is a buy signal. When MACDFS turns from a positive number to a negative number, it is a signal to sell.
Buying and selling strategies of short-term investors
1. In the moving average convergence deviation indicator (MACD) chart, if the DIF line turns from top to bottom, or the DEA line turns from top to bottom, it indicates that the price may fall and you can consider shorting.
2. On the other hand, if the DIF line goes from bottom to top, or the DEA line goes from bottom to top, it means that the price may rise and you can consider doing more.
Reference to the above content: Baidu Encyclopedia -MACD