MACD Stocks Indicator Crossover Stocks Signals

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

• When the Fast-line crosses below MACD Line (not center-mark) it shows stocks market momentum is slowing - this isn't a reversal stocks signal or a sell signal, wait for center mark crossover.
• When the Fast line crosses above the MACD Line (not center mark) it shows the stocks market momentum is slowing - this isn't a reversal stocks signal or a buy signal, wait for center mark crossover.
• The Center-Line crossover stocks signals will be the best signals for validating buy & sell signals.

Using the Stocks Trading chart in the stocks example illustrated and explained below, when MACD fast line crossed below the zero center mark, the sell signal was confirmed and the stocks market sentiment changed to bearish - downwards stock trend.

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

MACD Zero-Line Mark Crossover - Precisely When a Sell Stocks Signal and Buy Stocks Signal are Generated

Oscillation of the MACD Indicator

The MACD Stocks 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 stock trading market stocks trend while values below indicate bearish stock trend.

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

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

Over-bought conditions occur above the zero line while over-sold conditions occur way below the zero mark.

MACD Overbought Region - Stocks Trend Continuation Signal