How to use MACD correctly for analysis
1, DIF and DEA are both positive: when DIFF runs above the 0-axis through DEA, the columnar line changes from green to red, which belongs to the golden fork above the 0-axis, accelerating the upward trend, and seeing more buy signals, this trend can be operated in bands.
2. Both 2.DIF and DEA are negative numbers: when DIFF runs below the 0-axis through DEA, the columnar line turns from green to red, which belongs to the golden fork below the 0-axis, forming an upward trend in the short term, and can be operated in an ultra-short time and bought in a short time.
3. Both 3.DIF and DEA are negative numbers: when DIFF runs through DEA to below the 0-axis, the columnar line turns from red to green, and it forks under the 0-axis, accelerating the downward trend. In order to sell bearish signals, this trend needs to lighten or clear positions.
4. Both 4.DIF and DEA are positive: when DIFF runs above the 0-axis through DEA and the columnar line turns from red to green, it belongs to the dead fork above the 0-axis, forming an adjustment trend in the short term. In order to sell bearish signals, this trend has to lighten up.
As we all know, because MACD has a certain experience, while confirming whether buying or selling opportunities can be formed, it is necessary to see whether the trend is delayed according to the length of the column line. (1)) The green column changes from long to short, which means that the downward trend begins to slow down slowly and there are signs of rebound at any time. At this time, we should pay attention to and track the target and make buying opportunities at any time.
(2) The red column changes from long to short, which means that the upward trend begins to slow down slowly and there are signs of falling back at any time. At this time, we should be ready to sell at any time.
Mastering the skilled operation of MACD, we can also judge and identify the market with our heart and hands.