In addition, the basic principles that MACD indicators should follow are as follows:

1. When the DIF and DEA are above the 0 axis, it belongs to a bull market.

2. When the DIF and DEA are below the 0 axis, it is a short market.

3. Columnar line contraction and amplification.

As shown in the figure:

MACD is called exponential smma, which 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.