Similarities and differences smma, referred to as MACD index, is an American investor Gerald? Appel proposed it in the late 1970s. The design of MACD index is based on the principle of moving average, which is the trend index after smoothing the closing price (getting the weighted average). There is also a deviation relationship that appears in the top area of the stock price high point, which we call top deviation. The share prices of point A and MACD hit new highs at the same time, while the share price of point B continued to hit new highs, and MACD failed to hit new highs.

This technical form is the top bias. MACD indicator uses the aggregation and separation of short-term (commonly used 12 days) moving average and long-term (commonly used 26 days) moving average to judge trading opportunities. The index consists of positive and negative difference (DIF) and difference mean value (DEA), in which DIF is the core and DEA is the auxiliary. DIF is the difference between fast smma (EMA 1) and slow smma (EMA2).

The stock prices of point A and MACD hit a new low synchronously, and the stock price of point B continued to hit a new low, but the MACD did not fall synchronously, but stuck at a low point. This technical form is deviation. In this example, the divergence occurs at the bottom of the stock price low, so it is also called the bottom divergence. The advantage of MACD is that it abandons the defect that MA (moving average) frequently sends out buying and selling signals, and increases the requirements and restrictions of sending signals, which is more stable than MA in actual combat. The disadvantage of MACD is the same as that of Ma Yun. When the market is in sideways or interval consolidation, false signals and false hints are easy to appear due to exponential passivation.

MACD is not completely synchronized with the rhythm of stock price in operation, and sometimes there are deviations. It is this deviation that will give investors an important turning point signal in advance. Whether it is bottom deviation or top deviation, the deviation signal of MACD indicator has high accuracy in actual combat, and investors should attach great importance to it.