Generally speaking, when MACD turns from negative to positive, it is a signal to buy; When MACD turns from positive to negative, it is a signal to sell. When the MACD changes at a large angle, the gap between the fast moving average and the slow moving average quickly expands, which represents the change of the general trend of the market.
In addition to the conventional application methods, MACD also has its own special analysis methods.
First, the law of form
When the figure composed of red column or green column of MACD is in the form of double top and bottom, triple top and bottom, etc. , can be analyzed and judged according to the judgment method of morphological theory, as follows:
1, top deviation
When the trend on the K-line chart of crude oil price is higher than the peak, the price of crude oil has been rising, while the trend of red column composition on the MACD indicator chart is lower than the peak. That is to say, when the high point of crude oil price is higher than the previous high point, and the high point of MACD indicator is lower than the previous high point of indicator, this is called top deviation. The phenomenon of top deviation is generally a signal that the price is about to reverse at a high level, indicating that the price of crude oil is about to fall in the short term, which is a signal of selling or shorting.
2. Bottom deviation
Bottom deviation generally appears in the position range of crude oil futures price. When the price trend on the K-line chart of crude oil futures price is falling, 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 to say, when the low point of crude oil futures price is lower than the previous low point and the low point of index is higher than the previous low point, this is called bottom deviation. Bottom deviation is generally a signal that the position of crude oil futures price may reverse upward, indicating that crude oil price may rebound upward in the short term, which is a signal of short-term buying.
Second, the law of periodicity
Through the observation of previous data, we can draw the following two conclusions:
1, the longer the interval between green columns, the greater the future increase and the longer the time.
2. The longer the red column is maintained, the greater the space and intensity of the future decline and the longer the time.
Third, the average is the first.
MACD indicator echoes the short, medium and long-term moving averages, belongs to the trend interval and has the same inertia.