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The technical indicator MACD is a good use

2023/2/26 11:00:55  Classification:   Participation: 7  

In the beg rebatemeaninginforexning of the analys best forex rebate of MACD indicators before, I think we must first agree with the following two points from the mind, otherwise the following study has no meaning.  1) The trend can be grasped over a period of time; 2) Every indicator has a valid time, no indicator will always be valid. Your role is to figure out when the indicators are effective. To get back to the point. First from the MACD indicator formula to start: the first sentence: DIFF = daily deviation = short-term (12 days) smoothed average price of the average - long-term (26 days) smoothed average price of the average; when the average line in the form of multi-head arrangement, DIFF will appear to rise, otherwise there will be a decline in the second sentence: DEA = average deviation = (9 days) smoothed average price of the daily deviation third sentence: MACD = column line = & nbsp; (daily deviation - average deviation) X magnified by 3 times MACD is in essence a modified average system, smoothed several times, diluting the single K-line jump, indicating the direction of the current trend. Its main characteristic is its robustness, which is cashback forex overly sensitive to the short term, so it is too slow to operate in the short term, so it is outside the scope of this discussion. But that is why MACD can filter out the disorderly noise of the bestforexrebate, so that it gives a relatively stable trend in the market with a large period rebatesinforex a high number of K lines. The MACD has two major uses: a. Homeopathic operation --- gold rebateinforextrading / dead fork warfare is to chase the rise and fall, in the long market when the gold fork to buy, in the short market when the dead fork to sell.  Two. The top and bottom divergence method is to escape the top and bottom, in the top divergence when selling short, in the bottom divergence when buying more.   In a round of long quotes, the price is a new high after a new high, the average is a perfect multi-headed arrangement, just look at the price and the average seems to rise market will be endless.  However, when the market sentiment is completely infected by the current trend, the market has often run in the fifth wave. This is when the upside is limited, and the downside is unlimited.  And with the MACD head and shoulders pattern (right shoulder divergence) ----------- is an effective sobering agent that can often alert speculators to the possibility of the market ending at any time. Before introducing the two main methods of operation, we first recognize how to use the MACD head and shoulders pattern and drive the five waves to verify each other If you see the MACD occurring gold cross on the buy, dead cross on the sell, I believe we have been wiped out by the market.  The mechanical use of gold fork/dead fork signals to buy and sell may as well use a coin to decide to buy and sell will be more effortless, and the effect will not be much worse. MACD homeopathic operation is for the obvious trend of five waves of the market, homeopathic chase buy/sell the third wave does not participate in the adjustment. Of course, while waiting for the third wave of buying and selling signals to appear, will also miss a lot of good opportunities, but those opportunities do not belong to the signal range, so it does not belong to you and me. Lets just wait for those opportunities that belong to us 1) MACD zero axis above (long market) ------- only buy the first gold fork; not buy the second gold fork; not sell the first gold fork above the zero axis is often the beginning of the third wave. So why not buy the second golden fork? Because the later market is uncertain. The second golden fork is generally the beginning of the fifth wave (except for the extension of the three waves), while the five waves are relatively complex, may be a wave of exhaustion, may also be an extension of the wave. The idea of buying only the first golden fork is to buy relative certainty and give up uncertainty. There is another situation, we will be three waves of the market (ABC adjustment) wrong judgment into five waves of the market 2) MACD zero axis below (short market) ------- only sell the first dead fork; do not sell the second dead fork; do not buy gold fork 3) near the zero axis (balance market) ------- follow the direction of the breakthrough zero axis is near the balance of the city, consolidation city, often have a false breakthrough and then back to continue to consolidate The phenomenon, expressed in the indicators is just a dead fork and then a gold fork, so the effectiveness of the signal is relatively long/short market to low. But after the balance is broken, there will often be a longer trend trend trend. MACD reverse market operation ---- use divergence to escape the top of the bottom of the definition of divergence: the direction of the indicator is positive, the acceleration is negative meaning of divergence: the trend continues in the same direction, but the strength has weakened the phenomenon of divergence: price innovation high, the indicator does not create a new high (top divergence); price innovation low, the indicator does not create a new low (bottom divergence) right shoulder divergence at the end of the five waves, the trend is no longer strong, pullback or turn in the 0 axis Above the first gold fork do more, after the gold fork and dead fork are not done; in the 0 axis below the first dead fork do short, after the dead fork and gold fork are not done after the first dead fork do short after the top divergence; after the first gold fork do more after the bottom divergence

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