How to use MACD in RSI?


There are many kinds of technical analysis indicators, each of which has its own advantages and disadvantages. The key of technical analysis is not what indicators to choose, but how to use the selected indicators. Some very common indicators, if used well, will have obvious effects. This is just like an ordinary weapon. If it is in the hands of a martial arts master, it will be extremely powerful.

How to use RSI and MACD in foreign exchange trading?

RSI and MACD indicators, as the more common indicators in foreign exchange trading, are used by the majority of investors. But for the vast number of foreign exchange speculation novices, there may be some doubts in the use of these indicators. Here we will briefly explain the MACD and RSI indicators in the use of foreign exchange, I hope investors can get help from it.. The moving average of MACD is a relatively objective and difficult technical index for manipulation.

The characteristic of MACD moving average is that MACD moves faster in the short term and slower in the long term in the rising trend. The gap between the two will gradually widen, but with the stability of the rise, the distance between the two will continue to reduce, and even cross the situation, which is the signal to sell. Similarly, in the downward trend, cross is the most favorable signal for buying. Using the MACD moving average as the opportunity to judge foreign exchange trading, it has great advantages in foreign exchange trading, especially in fundamental analysis, most of which rely on MACD moving average. In the case of cowhide disc, MACD can also cause inaccurate prediction rate due to the frequent sending of signals.

Moving average can help investors do a good job in the short-term market, but can not see the long-term trend or decline from this technical index, so MACD is often used with RSI indicators. RSI has important guiding significance in the judgment of large trend.

RSI is a relatively strong and weak index. Through the statistics of foreign exchange rate price for a period of time, the strength comparison between the buyer and the seller is carried out, and the trend of foreign exchange price is judged by this method. RSI index also has fast line and slow line two indicators. When the fast line rises and breaks through the slow line, it is often the time to buy. On the contrary, it is the time to sell.

The RSI index is divided into the fast line and the slow line. Generally speaking, when the fast line develops upward and crosses the slow line, it is the signal of our buying; otherwise, it is the signal of selling. In particular, the RSI below 30 buy signal and above 70 sell signal is very reliable.

Usually, when we make a trading strategy, we should combine MACD and RSI. The most common way for investors to speculate in foreign exchange is to choose the strong or weak area of RSI index, and then use MACD to make trading strategy.

There are many technical analysis techniques in foreign exchange trading, among which MACD and RSI are the simplest. If you want to long-term foreign exchange trading, simulation, it is essential to master as many technical indicators as possible. Therefore, in the early stage of trading, it is recommended that you do more foreign exchange simulation operation to accumulate experience.

[disclaimer] the publication of this article by finance managers for the purpose of transmitting more information does not mean that it agrees with its views or confirms its description. The content of this paper is for reference only and does not constitute investment advice. Investors operate accordingly and bear their own risks

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