MACD is defined as the exponential smoothed average convergence and divergence, which is developed from the double exponential moving average. The slow exponential moving average is subtracted from the fast exponential moving average (EMA). The meaning of MACD is basically the same as that of the double moving average.

Same, but easier to read.

When MACD turns from negative to positive, it is a buy signal.

When MACD turns from positive to negative, it is a sell signal.

When MACD changes at a large angle, it means that the gap between the fast moving average and the slow moving average widens very quickly, which represents a change in the general market trend.

When applying MACD, you should first calculate the fast (usually 12-day) moving average and the slow (usually 26-day) moving average.

These two values ??are used as the basis for measuring the "difference value" between the two (fast and slow lines).

The so-called "difference" (DIF) is the 12-day EMA value minus the 26-day EMA value.

Therefore, in the ongoing rally, the 12-day EMA is above the 26-day EMA.

The positive difference (+DIF) will become larger and larger.

On the contrary, in a downtrend, the difference may become negative (-DIF) and become larger and larger.

As for the market starting to reverse, the positive or negative difference must be narrowed to a certain extent before it is truly a signal of market reversal.

MACD's reversal signal is defined as the 9-day moving average of the "difference" (9-day EMA).

In the exponential smoothing moving average calculation formula of MACD, the weight of the T+1 trading day is added respectively. Taking the currently popular parameters 12 and 26 as an example, the formula is as follows: Calculation of 12-day EMA: EMA12 = Previous

Calculation of daily EMA12

Calculate its 9-day EMA based on the dispersion value, which is the average dispersion value, which is the required DEA value.

In order not to be confused with the original name of the indicator, this value is also called DEA or DEM.

Today's DEA = (Previous day's DEA

Therefore, the MACD indicator is formed by combining two lines and one column. The fast line is DIF, the slow line is DEA, and the histogram is MACD.

In various types of investments, there are the following methods for investors to refer to: 1. When DIF and MACD are both greater than 0 (that is, graphically represented as being above the zero line) and moving upward, it is generally indicated that the market is in a long market.

You can buy to open a position or hold a long position; 2. When DIF and MACD are both less than 0 (that is, they are below the zero line on the graph) and move downward, it generally means that the market is in a short market, and you can sell to open a position.

Warehouse or wait and see.

3. When DIF and MACD are both greater than 0 (that is, graphically represented as being above the zero line) but both move downward, it generally means that the market is in a downward stage, and you can sell, open a position and wait and see; 4. When DIF and MACD

When MACD is both less than 0 (that is, graphically represented as being below the zero line) but moving upward, it generally means that the market is about to rise and the stock will rise, and you can buy to open a position or hold a long position.

The Exponentially Smoothed Moving Average Convergence and Divergence, or MACD for short, is a technical indicator that uses the aggregation and separation between the short-term index average indicator and the long-term index average indicator to judge the timing of buying and selling.

MACD, developed based on the moving average principle, firstly overcomes the defect of frequent false signals of the moving average, and secondly, it can ensure the maximum results of the moving average.

The trading principles are: 1. DIF and DEA are both positive, and DIF breaks through DEA ??upwards, which is a reference for buying signals.

2. DIF and DEA are both negative, and DIF falls below DEA, which is a reference for selling signals.

3. If the DIF line deviates from the K line, the market may show a reversal signal.

4. MACD values ??changing from positive to negative, or from negative to positive are not trading signals because they lag behind the market.

Basic usage 1. MACD Golden Cross: DIFF breaks through DEA ??from bottom to top, which is a buy signal.

2. MACD dead cross: DIFF breaks through DEA ??from top to bottom, which is a sell signal.

3. MACD green turns red: MACD value changes from negative to positive, and the market turns from short to long.

4. MACD red to green: 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, you can buy.