What does macd of K-line chart mean?
The name of macd is convergence and divergence of moving averages, which means that macd turns from negative to positive, which is a signal to buy, and when macd turns from positive to negative, it is a signal to sell.
In our usual transactions, macd indicator can be said to be the most used indicator, which has been tested countless times in history. It is worth noting that this trend indicator has amazing accuracy when used to judge trend changes, volatile market, bottom and top.
In general, macd indicator is one of the most commonly used entry and exit criteria for system traders, which is widely used to judge trading points and market long and short conditions. In the upward trend, the indicator shows that the red column of a stock will continue to rise, one is longer than the other, and the stock will be passivated at a high level only after it is close to the top or consolidated, and the energy column represented by macd will gradually appear shorter than the other. In the downward trend, the opposite is true. The closer to the bottom, the shorter the green column.
Therefore, macd itself is a stock technical indicator of trend judgment, but the accuracy of this judgment makes it the king of indicators.