There are two deviations of macd indicators: top deviation and bottom deviation; Top Deviation When the trend of the stock on the K-line chart is higher than the peak, the stock price has been rising, while the trend of the graph composed of red columns on the macd indicator chart is lower than the peak, that is, when the high point of the stock price is higher than the previous high point and the high point of the macd indicator is lower than the previous high point, this is called top deviation. Top deviation is generally a signal that the stock price is about to reverse at a high level, indicating that the stock price is about to fall in the short term, which is a signal to sell stocks.
Bottom deviation generally appears in the low area of stock price. When the stock price is running on the K-line chart, the stock price is still falling, and the trend of the graph composed of green columns on the macd indicator chart is that the bottom is higher than the bottom, that is, when the low point of the stock price is lower than the previous low point, but the low point of the indicator is higher than the previous low point, this phenomenon is called the bottom deviation phenomenon. Bottom deviation is generally a signal that the stock price may reverse upward at a low level, indicating that the stock price may be in the short term.
An upward rebound is a signal to buy stocks in the short term.