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MACD indicator

cashbackforexbroker forexrebateclub called exponentially smoothed moving cashbackforexexness, developed from the double moving average, from the fast moving average minus the slow moving average, MACD meaning cashback forex double moving average is basically the same, but easier to read when MACD from negative to positive, is a signal to buy when MACD from positive to negative, is a signal to sell when MACD with a large angle When the MACD changes at a large angle, it means that the gap between the fast moving average and the slow moving average is widening very quickly, representing a shift in the general trend of the market Calculation formula DIF forex rebate club (Difference) The difference between the short-term moving average and the long-term moving average DEA line (DifferenceExponentialAverage) The M-day exponential smoothing moving average of the DIF line MACD line The difference between the DIF line and the DEA line, colored bars Parameters: SHORT (short-term), LONG (long-term), M days, generally 12, 26, 9 The formula is shown below: Weighted average index (DI) = (the highest index of the day + the closing index of the day + 2 times the lowest index of the day) Twelve-day smoothing factor (S12) = 2/(12 + 1) = 0.1538 Twenty-six-day smoothing coefficient (L26)=2/(26+1)=0.0741 Twelve-day index average (12-day EMA)=S12× current days closing index + 11/(12+1)× yesterdays 12-day EMA Twenty-six-day index average (26-day EMA)=L26× current days closing index + 25/(26+1)× yesterdays 26-day EMA (ExponentialMovingAverage), the exponential average indicator is also called EXPMA indicator, it is also a convergence class indicator, the exponential average indicator is an exponentially decreasing weighted moving average the weighting of each value is exponentially decreasing over time, the more recent data weighted The more recent the data, the heavier the weighting, but older data are also given a certain weighting Divergence (DIF) = 12-day EMA - 26-day EMA Nine-day DIF smoothed moving average (DEA) = the current days DIF × 0.2 + yesterdays DEA × 0.8 There is another indicator on the analysis software called the bar (BAR): MACD: BAR = 2 × ( DIF-DEA) Application principles In the existing technical analysis software, MACD commonly used parameters are fast smoothing moving average of 12, slow smoothing moving average parameters of 26 In addition, MACD has an auxiliary indicator — — bar line (BAR) in most futures technical analysis software, the bar line is colored, below the 0 axis is green The former represents a weaker trend, the latter represents a stronger trend Here we talk about the basic principles that should be followed when using MACD indicators in the stock market: 1. When the DIF and DEA are above the 0 axis, belongs to the long market, DIF line from the bottom up through the DEA line is a buy signal DIF line from the top down through the DEA line, if the value of the two lines are still in the 0 axis When the DIF and DEA are below the 0 axis, belongs to the short market DIF line from the top to cross the DEA line is a sell signal, DIF line from the bottom to cross the DEA line, if the value of the two lines are still running below the 0 axis, can only be considered a short-lived rebound, and Considered as a short-lived rebound, but can not determine the trend turn, at this time whether to buy also need to use other indicators to comprehensive judgment 3. column contraction and amplification in general, the continued contraction of the column indicates that the strength of the trend is gradually weakening, when the color of the column changes, the trend to determine the turn but in some of the time period is not long MACD indicators, this view is not completely Established 4. morphology and divergence situation MACD indicator also emphasizes the morphology and divergence phenomenon when the morphology of the MACD indicator DIF line and MACD line form a high bearish pattern, such as head and shoulders, double-headed, etc., should remain vigilant; and when the morphology of the MACD indicator DIF line and MACD line form a low bullish pattern, should be considered for buying in the judgment of the morphology of the DIF line is the main, MACD line When the price continues to rise, but the MACD indicator out of a wave than a wave of low trend, it means that the top divergence appears, indicating that the price will probably turn down soon, when the price continues to decrease, but the MACD indicator out of a wave than a wave of trend, it means that the bottom divergence phenomenon appears, indicating that the price will soon end the decline and turn up 5. When the price is not running from top to bottom or bottom to top, but to maintain the horizontal direction of movement, we call it a bull market, then the false signal will be generated in the MACD indicator, the indicator DIF line and MACD line crossover will be very frequent, while the collection and release of the column line will also appear frequently, the color will often turn from green to red or from red to green, then the MACD indicator is in a state of distortion, the use of The value of the DIF curve shape for analysis, mainly using the principle of divergence of indicators specifically: If the direction of the DIF and the direction of the exchange rate divergence, it is the time to take specific action but, according to the above principles to guide the actual operation, the accuracy is not satisfactory after practice, exploration and summary, the integrated use of the 5 day, 10 day average price line, 5 day, 10 day average volume line and MACD, its accuracy is greatly improved

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