MACD Stock Strategies

• MACD Fast Line and Signal Line
• MACD Buy and Sell Stocks Signals
• MACD Whipsaws Fake Out Signals
• Generating Center Line Crossover Signals
• MACD Classic Bullish and Bearish Divergence
• MACD Hidden Bullish and 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 stocks trend following characteristics.

MACD is one of the most popular indicators used in stocks technical analysis. MACD indicator is used to generate stocks 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 stocks technical indicator. MACD indicator shows the correlation between two moving averages.

One moving average is of a shorter period & the other for a longer period of stocks price bars.

MACD Stock Indicator - MACD Stock 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 stocks 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 stocks trend is still bullish as illustrated below.

Do not sell as long as the MACD Stocks 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 stocks examples illustrated & described below.

MACD Stocks Indicator Above Zero Mark - Bullish Stocks Signal

In a downwards stocks 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 stocks trend is still bearish as illustrated below.

Do not buy as long as the MACD Stocks 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 stocks examples illustrated & described below.

MACD Stocks Indicator Below Zero Center Line Mark - Bearish Stocks Signal

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