🌟 《Daily Trading Classroom》 on MACD Indicator 📈
Among trend indicators, MACD is undoubtedly a "must-have for beginners". It's simple, practical, and especially friendly for beginners.
Overview of MACD Basic Knowledge 👇
1. MACD Fast and Slow Lines (also known as DIF and DEA)
The correlation between the DIF fast line and price movement is stronger than that of the DEA slow line, meaning it "moves faster".
✨ Small Tips: The combination analysis of DIF and DEA hides common golden cross and death cross signals here!
3. MACD Histogram
👉 Function: Displays the difference between DIF and DEA, the positive and negative changes in the histogram reflect the strength of market forces.
✨ Understanding Method: When the histogram shifts from negative to positive, bullish strength increases; when it shifts from positive to negative, bearish strength increases.
Application of MACD Indicator 💡
Crossing of DIF and DEA
Golden Cross 🌈: The DIF line crosses above the DEA line from below, indicating that market strength may turn strong, which is a buying signal! Death Cross 💔: The DIF line crosses below the DEA line from above, indicating that market strength is weakening, consider reducing positions or selling.
Changes in Histogram
Histogram shifts from negative to positive 📈: Bullish strength recovers, and the market may enter an upward trend. Histogram shifts from positive to negative 📉: Bearish strength intensifies, and the market may enter a downward trend.
Pros and Cons of MACD 👀
Pros:
🌟 Suitable for judging medium to long-term trends, signals are relatively stable, suitable for trend following.
Cons:
⚠️ Easily generates false signals in choppy markets!
⚠️ A bit slow for short-term trading signals, suitable for friends holding medium to long positions!
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