MACD Strategy

• MACD Fast Line and Signal Line
• MACD Buy & Sell Trading Signals
• MACD Whipsaws Fake Out Signals
• Generating Center Line Crossover Trading Signals
• MACD Classic Bullish & Bearish Divergence
• MACD Hidden Bullish & Bearish Divergence
• MACD Summary

MACD Center Line Crossover

The MACD indicator is one of the most widely & oftenly used technical indicators available. MACD technical indicator is a momentum oscillator with some oil trend following characteristics.

MACD indicator is one of the most popular indicators used in crude oil trading analysis. MACD indicator is used to generate crude oil signals using crossovers.

MACD plots the divergence and convergence of moving averages. MACD indicator is constructed using moving average analysis. Moving Average Convergence/Divergence is a trend-following oil technical indicator. MACD indicator shows the correlation between two moving averages.

One moving average is of a shorter period and the other for a longer period of crude oil price bars.

MACD Crude Oil Indicator - MACD Crude Oil Indicator Technical Analysis

MACD indicator has a zero center line: values above zero line are bullish while those below zero are bearish.

In an upwards oil trend the shorter MACD line rises faster that the longer MACD line this creates a gap. In addition as long as the MACD indicator is above the center mark the oil trend is still bullish as shown below.

Do not sell as long as the MACD Oil Trading Indicator is above the Center Mark - this is bullish territory and it does not matter how it is moving as long as it is above the zero center mark, as shown on the crude oil trading example explained below.

MACD Oil Trading Indicator Above Zero Mark - Bullish Trading Signal

In a downward oil trend the shorter MACD line falls faster than the longer MACD line this creates a gap. In addition as long as the indicator is below the center mark the oil trend is still bearish as shown below.

Do not buy as long as the MACD Oil Trading Indicator is below the Center Mark - this is bearish territory and it does not matter how it is moving as long as it is below the zero center mark, as shown on the crude oil trading example explained below.

MACD Oil Trading Indicator Below Zero Center Line Mark - Bearish Trading Signal

When the oil trend is about to reverse the MACD lines begin to move closer to each other, thus closing the gap.