MACD, also known as convergence and divergence of moving averages, is developed from double moving averages. Slow moving average minus fast moving average. The meaning of MACD is basically the same as the double moving average, but it is 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 signal to sell. When the MACD changes at a large angle, it means that the gap between the fast moving average and the slow moving average expands very quickly, which represents the change of the market trend.

MACD was put forward by Geral Appel in 1979. A technical index for judging the trading time by using the aggregation and separation between the short-term (usually 12) moving average and the long-term (usually 26) moving average.

Common ways to escape from the roof are:

1, the stock price is sideways, and the MACD indicator is sold dead. It means that the stock price has been sideways after a sharp rise, forming a relatively high point, and the MACD indicator is the first to appear dead fork. Even if there is no dead fork on the 5 th and the 10 moving average, it is necessary to lighten up the position in time.

2. If the stock price does not plummet after the MACD indicator is dead, but rises again after the callback, it is often the last time the main force rises to cover the shipment, and the height is extremely limited. The high point formed at this time is often the highest point of a wave of market. The sign at the top of the judgment is the deviation of "price and MACD", that is, when the stock price hits a new high, but the MACD fails to hit a new high at the same time, the two trends deviate, which is a reliable signal that the stock price peaks.

Several problems that should be paid attention to in actual combat

The rise of 1 MACD does not mean that the market is good. MACD reflects the distance between DIF and DEA, and does not directly represent the shape of the moving average, so when MACD rises, the market may still be in a unilateral decline state.

2. Only DIF directly reflects the shape of EMA, while DEA and MACD only analyze DIF. This is also the main reason why MACD is more sensitive than EMA.

3.MACD does not reflect the long-term trend. Traditionally, people think that MACD reflects a long-term trend. In fact, it is calculated according to the difference between two short-term moving averages (26 12), which cannot reflect the overall trend. Of course, we can strengthen our grasp of the overall trend by changing the cycle.

4.MACD should not be used in one cycle. This is the conclusion drawn from the third point. MACD can't grasp the long-term trend in a single cycle, which will bring great risks to traders, so it should be used in multi-cycle environment as much as possible in actual combat.

MACD is one of the traditional indicators with the highest rate of return. But still can't meet the needs of actual combat.