What do MACD red and green pillars stand for
The red and green column in MACD index has its unique meaning, but some investors do not understand it very well. Group loan encyclopedia believes that to better grasp the stock market, we need to start with the basic knowledge of the stock market, and learning the meaning represented by the red and green pillars of MACD is also the most basic. So what does the red and green pillars of MACD mean?
In fact, the MACD red column represents that the price will pick up at a low level or further rise, and the corresponding trend is usually unilateral upward, which is a signal of continuous accumulation of bull momentum, and the market is dominated by bull market.
MACD green column represents gold and silver prices will be high callback or further downward, the corresponding trend is usually unilateral downward, is the signal of short momentum continues to accumulate, and the disk is dominated by short market.
1. MACD red column increment
The increase of MACD red column indicates that the kinetic energy of bulls is gradually accumulating, which promotes the price of gold and silver to rise. The K line will form a positive line, and the increase of MACD red column is good for the future.
2. MACD red column shrinkage
The MACD red column shrinkage indicates that the momentum of bulls is gradually failing, which will suppress the fall of gold and silver prices. The physical part of the positive K line will be cut. When the MACD red column shrinkage reaches zero, the K line will form or deviate to the shadow line. The MACD red column shrinkage is bad for the future.
3. MACD green column increment
The increase of MACD green column indicates that the short momentum is gradually accumulating, thus suppressing the fall of gold and silver prices. The K line will form a negative line, and the increase of MACD green column is bad for the future.
4. MACD green column shrinkage
The decrease of MACD green column indicates that the momentum of short selling is gradually failing. As a result, the price of gold and silver is supported at a relatively low level, and the physical part forming the negative K-line will be cut. When the MACD green column is reduced to zero, the K-line will form or deviate to the shadow line. The decrease of MACD green column is good for the future.
1. MACD red column to green column
When the MACD red column shrinks to zero and the green column appears, there are two cases. When the MACD two lines are above the zero axis, the kinetic energy of multi heads will continue to dominate the disk for a period of time, and the K line will go down after a little high vibration; when the MACD two lines are near or below the zero axis, the K line will go down rapidly. Both of the two situations make the trading price of precious metals decrease with the increase of MACD green column volume, and the K-line trend shows a long continuous negative line.
2. MACD green column to red column
When the MACD green column shrinks to zero and the red column appears, there are two situations. When the MACD two lines are near or above the zero axis, the K line will gradually narrow the decline and try to return to the up; when the MACD two lines are below the zero axis, the short kinetic energy will dominate the disk for a period of time, and the K line will turn to the up after a little low oscillation. In both cases, the price increased with the increase of MACD red column volume, and the K-line trend showed a long continuous positive line.
Note: MACD is called exponential smooth moving average, which is developed from double exponential moving average. It subtracts slow exponential moving average from fast exponential moving average (EMA). The meaning of MACD is basically the same as double exponential moving average, but it is more convenient to read. When MACD turns from negative to positive, it's a buy signal. When MACD turns from positive to negative, it's a sell signal. When MACD changes from a large angle, it means that the gap between the fast moving average and the slow moving average widens very quickly, which represents the change of a market trend.
As for the meaning represented by the red and green pillars of MACD, I think I have understood all of them.
[disclaimer] the publication of this article by finance managers for the purpose of transmitting more information does not mean that they agree with their views or confirm their descriptions. The content of this article is for reference only, and does not constitute an investment proposal. Investors operate on this basis at their own risk