MACD Oil Indicator Crossover Trading Signals

MACD Center line crossovers generate crude oil signals using the center line mark. The sentiment of the crude oil market can be confirmed using the MACD center line crossovers. MACD oil trading crossover above the center line mark generates bullish oil market sentiment while cross-over below the center line generates bearish oil market sentiment.

• When the Fast-line crosses below the MACD Line (not center mark) it shows oil market momentum is slowing - this is not a reversal oil signal or a sell oil signal, wait for the center mark cross over.
• When the Fast line crosses above the MACD Line (not center mark) it shows the crude oil market momentum is slowing - this is not a reversal oil signal or a buy oil signal, wait for the center mark cross over.
• The Center-Line crossover oil trading signals will be the best trading signals for confirming buy and sell oil trading signals.

Using the Oil Trading chart in the crude oil trading example explained below, when MACD fast line crossed below the zero center mark, the sell oil signal was confirmed and the crude oil market sentiment changed to bearish - downwards oil trend.

Also in the crude oil trading example explained below when MACD fast line later crosses above zero center mark, a buy oil signal was generated and the crude oil market sentiment changed to bullish - upwards oil trend.

MACD Zero-Line Mark Crossover - Precisely When a Sell Oil Signal & Buy Oil Trading Signal are Generated

Oscillation of the MACD Indicator

The MACD Oil Trading indicator is an oscillator indicator that moves up and down around a zero center line mark. The center-line is the neutral measurement, values above zero will indicate bullish oil market oil trend while values below indicate bearish crude oil trend.

The MACD indicator is also used to indicate overbought and oversold levels. When the MACD reaches overextended levels, then oil is overbought or oversold. However, in a strong upward trending oil market oil prices will stay overbought in this case it's better to buy.

Also in a strong down crude oil trending oil market its better to sell, because oil prices will stay in the oversold region for a long time.

Overbought conditions occur above the zero line while oversold conditions occur way below the zero mark.

MACD Overbought Region - Oil Trading Trend Continuation Signal