Application of MACD index in short and middle line Trading
In the gold investment, traders should not only pay attention to the basic news such as policy changes and news, but also master the technical indicators in the gold platform, which is the trading strategy of combining the fundamentals with the technical aspects in gold trading.
MACD is the most common and important indicator among many technical indicators. For traders with different emphasis, the focus of making decisions through MACD data is also different. Here we will introduce the application of MACD index in short-term and midline trading.
MACD is called the exponential smooth moving average, which is developed from the double index moving average. The fast line dif is obtained by subtracting the fast moving average (ema12) from the slow moving average (ema26), and then the MACD column is obtained by 2 × (the 9-day weighted moving average DEA of the fast line dif-dif).
The meaning of MACD is basically the same as that of the double moving average, that is, the dispersion and aggregation of fast and slow moving averages represent the current long short state and the possible development trend of stock price, but it is more convenient to read. When MACD turns from negative to positive, it's a buy signal. When MACD turns from a positive number to a negative number, it's a signal to sell. When MACD changes in a large angle, it means that the gap between the fast moving average and the slow moving average is very rapid, which represents a change in the market trend.
（1） Trading strategy of short term customers
In the MACD icon, if macd1 turns from up to down, or macd2 turns from up to down, it means that the price may fall, and short selling can be considered. On the contrary, if macd1 turns from bottom to top, or macd2 turns from bottom to top, it means that the price may rise, so we can consider doing long. In the technical indicators of silver platform, this kind of transaction signal will appear frequently, and the number of transactions of customers will increase accordingly.
（2） Trading strategy of medium and short term customers
In the MACD icon, the green horizontal line is the watershed of the columnar vertical line. If the column vertical line appears below the watershed, it is called "negative", while if it appears above the watershed, it is called "positive". For medium and short-term investors, when the vertical line of MACD changes from negative to positive, that is, when the vertical line changes from below the watershed to above, it is a long signal.
At this point, macd1 will traverse macd2 from the bottom up. On the contrary, when the column vertical line changes from positive to negative, that is, when the vertical line changes from above the watershed to below, it is a short signal. Similarly, macd1 will traverse macd2 from top to bottom.