1. When DIF breaks through DEA from bottom to top, a golden cross is formed, that is, white DIF is crossed by yellow DEA. Or the bar line (green bar line) is shortened, which is a buy signal.

2. When DIF breaks through DEA from top to bottom, it forms a dead fork, that is, white DIF wears yellow DEA. Or the bar line (red bar line) is shortened, which is a sell signal.

3. Top deviation: When the stock price index rises wave after wave, and DIF and DEA do not rise synchronously, but fall wave after wave, which forms a top deviation from the stock price trend. It indicates that the stock price is about to fall. If DIF crosses DEA twice from top to bottom at this time, forming two death crosses, the stock price will drop sharply.

4. Bottom deviation: When the stock price index goes down wave by wave, and DIF and DEA do not go down synchronously, but go up wave by wave, which forms a bottom deviation from the stock price trend, indicating that the stock price is about to rise. If DIF crosses DEA twice from bottom to top, forming two golden crosses, the stock price will rise sharply.

MACD indicator is mainly used to judge the long-term upward or downward trend of megatrends. When the stock price is in the market or the index fluctuation is not obvious, the MACD trading signal is not obvious. When the stock price fluctuates greatly in a short period of time, because the MACD moves quite slowly, it will not immediately generate a trading signal to the stock price change.

MACD mainly uses the long-term and short-term smooth moving averages to calculate the difference between them as the basis for judging market transactions. MACD indicator is a trend indicator based on the construction principle of moving average, which smoothes the closing price of the price (calculates the arithmetic average). It mainly consists of positive and negative difference (DIF) and difference average (DEA), in which positive and negative difference is the core and DEA is the auxiliary. DIF is the difference between fast smma (EMA 1) and slow smma (EMA2).

In the existing technical analysis software, the commonly used parameters of MACD are fast smma 12 and slow smma 26. In addition, MACD has an auxiliary indicator bar. In most technical analysis software, columnar lines are colored, green below axis 0 and red above axis 0. The former represents weakness, while the latter represents strength.