Aerial Classroom ----- MACD Usage Mnemonics
If you are still using the strategy of 'buy on golden cross, sell on death cross' for operating MACD, you are a bit outdated. Let me unveil the advanced techniques of the MACD indicator, allowing you to easily grasp the secrets of profit!
MACD is not just a simple buy and sell signal; it is also a barometer of market sentiment and trend. Remember these five mnemonics:
1. The balance of long and short forces is at the zero axis boundary; act cautiously in the underwater area, it is better to stay still than to act rashly.
2. When the first golden cross occurs underwater, do not rush to enter; observe first, as the second golden cross is the safe signal.
3. When the first death cross occurs underwater, retreat without hesitation; the second death cross is an even more dangerous signal, escaping is the best strategy.
4. In the above-water area, the first golden cross is a good opportunity to hold assets, and the second golden cross is a signal to increase positions; continue to dance!
5. When the first death cross occurs above water, observe first, but be decisive in selling at the second death cross, even if it means selling wrong, because the risk is imminent.
Mastering these MACD mnemonics will help your trading become more precise and efficient.