{"id":5385,"date":"2024-05-17T18:40:32","date_gmt":"2024-05-17T10:40:32","guid":{"rendered":"https:\/\/www.seenda.cn\/?p=5385"},"modified":"2024-11-26T03:24:12","modified_gmt":"2024-11-25T19:24:12","slug":"how-to-use-the-macd-indicator","status":"publish","type":"post","link":"https:\/\/www.seenda.cn\/how-to-use-the-macd-indicator.html","title":{"rendered":"How to Use the MACD Indicator"},"content":{"rendered":"

\"how<\/p>\n

A bullish divergence happens when the MACD creates higher highs whilst the price action or the candlesticks make a lower highs. This indicates that there could be a bullish reversal within the stock. We can see bearish how and where to buy and sell cryptocurrencies like bitcoin<\/a> crossover sell signals in action for $MAC (MacroAsia Corporation). Although the signals don\u2019t necessarily indicate the end of the uptrend, they could be used to take profit or trim down in your positions.<\/p>\n

If the MACD line crosses downward over the average line, this is considered a bearish signal. A bullish signal occurs when the histogram goes from negative to positive. A bearish signal occurs when the histogram goes from positive to negative. The moving average convergence divergence (MACD) indicator is a popular tool used by traders to help with their entry and exit points.<\/p>\n

\"how<\/p>\n

The image below for $GLO (Globe Telecom, Inc.) is the bullish divergence, opposite of the bearish divergence. We can see how the stock reacted days after the bullish divergence was spotted. The MACD indicated that the selling pressure was waning down and that there was an impending bullish sentiment about to happen. Its purpose it to help generate trading signals by identifying when there\u2019s a turning point in the trend.<\/p>\n

MACD Divergence<\/h2>\n

Part of the reason why technical analysis can be a profitable way to trade is because other traders are following the same cues provided by these indicators. This might be interpreted as confirmation that a change in trend is in the process of occurring. Swing trading is somewhere between day-trading and long-term trading. Trades in swing trading typically last from a few days to a few weeks.<\/p>\n

MACD \u2013 Moving Average Convergence Divergence<\/h2>\n

And as we know, the \u201ctrend is your friend\u201d which means that a rising exponential moving average should play to our advantage. As we\u2019ve covered previously, the histogram shows the distance from the MACD line to the signal line. If this distance is increasing, it means that the market is increasing its speed of movement. If the histogram grows too long, we might want to consider the market overbought\/oversold, and take a position against the short term market trend.<\/p>\n