MACD, called Similarities and Differences 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 express DIF, and then use 2× (the 9-day weighted moving average DEA of the express DIF-DIF) to get the MACD column.
The meaning of MACD 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 possible development trend of stock prices, 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.
Extended data:
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.
Buying and selling strategies of short-and medium-term investors
1. The vertical line in the moving average convergence deviation indicator (MACD) chart is called the moving average convergence deviation indicator (MACD), and the green horizontal line is the watershed of the columnar vertical line. The column vertical line is called "negative" when it appears below this watershed, and "positive" when it appears above it.
2. For short-and medium-term investors, when the moving average converges and deviates from the MACD column vertical line from negative to positive, that is, when the vertical line changes from below the watershed to above, it is multi-signal. If the moving average convergence deviation index (MACD) is used for analysis, the DIF line will cross the DEA line from bottom to top.
3. On the contrary, when the column vertical line changes from positive to negative, that is, when the vertical line changes from above the watershed to below, it is a short signal. Similarly, the DIF line will cross the DEA line from top to bottom.
Baidu encyclopedia -MACD