What Is MACD Index?

2010/10/1 15:21:00 51

MACD index

MACD calculates the deviations between two according to the exponentially smoothed moving average of different speeds, which is the basis for judging the market. Actually, it uses the signs of convergence and separation of fast and slow moving averages to judge buying and selling.

Opportunity

And signal, in actual operation, the MACD index not only has the function of searching the bottom (price, MACD deviating), catching the strong rising point (MACD continuously buying two times when buying red), and also can catch the best selling point and help investors successfully escape the top.

The common methods of escaping are:

Price of stock

Crosses and MACD indicators sell out.

It means that the stock price has been sorted out after the sharp rise of the stock price, forming a relatively high point. The MACD index is the first to appear dead crossing. Even if there is no dead crossing on the 5 and 10 day average lines, it should be promptly reduced.

2, if the MACD index does not drop sharply after the death of a dead crossing, it will rise again after the callback. At this time, the main force is going to cover the shipment and then pull it up for the last time. The height is very limited. At this time, the high point is often the highest point in a wave market. The top mark is "price, MACD" deviation, that is, when the stock price hits a new high while MACD fails to synchronize a new high, the trend of the two deviates from each other, which is a reliable signal for the stock price to reach the top.