What do you think of MACD line?

1. When the DIF and DEA are above the 0 axis, it is a bull market, and when the DIF line crosses the DEA line from bottom to top, it is a buy signal. When the DIF line crosses the DEA line from top to bottom, if the two lines are still running above the 0 axis, it can only be regarded as a short-term decline, and the trend inflection point cannot be determined. Whether to sell or not at this time needs to be judged by combining other indicators.

2. When the DIF and DEA are below the 0 axis, it is a short market. When the DIF line crosses the DEA line from top to bottom, it is a sell signal. When the DIF line crosses the DEA line from bottom to top, if the two lines are still running below the 0-axis, it can only be regarded as a short-term rebound, but the inflection point of the trend cannot be determined. At this time, whether to buy or not needs to be judged by combining other indicators.

3. The columnar line shrinks and enlarges. Generally speaking, the continuous contraction of columnar lines indicates that the strength of trend operation is gradually weakening. When the color of the column line changes, the trend determines the turning point. However, when using some short-term MACD indicators, this view cannot be fully established.

4. Form and deviation. MACD indicators also emphasize morphology and deviation. When the DIF line and MACD line of MACD indicators form a high bearish pattern, such as head and shoulders, double heads, etc. We should be vigilant; When the morphological MACD indicator DIF line and MACD line form a low bullish pattern, you should consider buying.

When judging the shape, DIF line is the main one and MACD line is the auxiliary one. When the price continues to rise and the MACD indicator goes out of wave after wave, it means that there is a top deviation, which indicates that the price is likely to turn around in the near future. When the price continues to fall,

However, when the MACD indicator goes higher and higher, it means that the bottom deviation phenomenon appears, which indicates that the price is about to end the decline and turn to rise.

5. Cowhide market indicators will be distorted. When the price does not run from top to bottom or from bottom to top, but keeps running horizontally, we call it cowhide market, and the MACD indicator will generate an error signal.

The intersection of DIF line and MACD line will be very frequent, and the retraction of columnar line will also occur frequently, and the color will often turn from green to red or from red to green. At this point, the MACD indicator is in a distorted state, and its use value will be reduced accordingly.

Extended data:

MACD line formula algorithm

Difference (difference) The difference between short-term and long-term indicators smma.

M-day index smma of DEA difference line.

The DIFFerence between MACD line diff line and DEA line, color column line

Parameters: SHORT (short), LONG (long), m days, generally12,26,9.

The formula is as follows:

Weighted average index (DI)= (the highest index of the day is twice the closing index of the day, while the lowest index of the day)

Twelve-day smoothing coefficient (l12) = 2/(12+1) = 0.1538.

On the 26th day, the smoothing coefficient (L26) = 2/(26+1) = 0.0745438+0.

12 daily average index (12 EMA)=L 12× closing index of the day+11(12+1)× yesterday's EMA.

26-day index average (26-day moving average) =L26× closing index of the day +25/(26+ 1)× yesterday's 26-day moving average.