Basic usage of MACD indicator
1. MACD Golden Cross: DIFF breaks through DEA ??from bottom to top, which is a long signal.
2. MACD dead cross: DIFF breaks through DEA ??from top to bottom, which is a short selling signal.
3. MACD turns from bottom to top: MACD value turns from negative to positive, and the market turns from short to long.
4. MACD changes from up to down: MACD value changes from positive to negative, and the market turns from long to short.
5. When DIFF and DEA are both positive, that is, when both are above the zero axis, the general trend is a bull market. If DIFF breaks through DEA ??upward, it can be used as a long signal.
6. When DIFF and DEA are both negative, that is, when both are below the zero axis, the general trend is a short market. If DIFF falls below DEA, it can be used as a short selling signal.
7. When the DEA line deviates from the K-line trend, it is a reversal signal.
8. DEA has a higher error rate when consolidating the situation, but if it is combined with RSI and KD indicators, it can make up for its shortcomings.