What is the stock "macd"?
What is the auxiliary indicator of "macd" on the stock chart?
Moving average convergence and diffusion index It is a vibrator indicator that tries to find a signal of trend change in the relationship between moving average lines with different periods. The moving average line is created to eliminate irregularities caused by short-term fluctuations in stock prices, and MACD tries to find a trading signal using these moving average lines. Since the simple moving average line has the disadvantage that the trend change signal appears late, MACD uses the exponential moving average to solve this problem. MACD is known as a good indicator for analyzing trend direction and stock price movements rather than finding a point of trend change.
Macd is an auxiliary indicator focused on the nature of the moving average line repeating convergence and diffusion.
Here, the moving average line is not a simple moving average line, but an exponential moving average line.
Since the moving average line repeats convergence and diffusion, the macd line repeats fluctuations around the 0 line.
The macd index consists of the macd line and the signal line.
Breaking the macd line means golden cross of the moving average line, and falling below the 0 line means dead cross.
The variables basically set in securities firms are 12, 26, and 9.
This shows the convergence and diffusion of the 12-day moving average line and the 26-day moving average line.
The basic trading technique using the macd index is to buy when the macd line crosses the 0-line, that is, when the 12th moving average line crosses the 26th moving average line, and sell it when the 0-line collapses.
In addition, there are ways to buy the macd line when it crosses the signal line golden and sell it when it crosses dead.
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