![]() Recall that a crossover generates buy-and-sell signals. It helps depict when a crossover may take place. This bar chart represents the difference between the MACD line and the signal line. The difference line, represented in the chart by the blue bars, is typically presented as a bar chart around the zero line. It's worth noting that MACD can theoretically rise or fall indefinitely. Currently, neither line is near what might generally be considered an extreme level. Alternatively, when MACD is well above the zero line in extremely positive territory, it can suggest an investment may be overbought (i.e., a sell signal). The signals using this interpretation would be as follows: When the MACD line is well below the zero line in extremely negative territory, it can suggest an investment may be oversold (i.e., a buy signal). Some chart users think oscillators like MACD are most valuable when they reach their boundary's extreme levels (i.e., the MACD and signal lines are relatively far away from the zero line). The zero line is also significant because it can act as support and resistance. The MACD line recently crossed below the zero line, generating a sell signal. A sell signal is given when the signal line or the MACD line crosses below the zero line, and a buy signal is given when either cross above the zero line. These 2 lines fluctuate around the zero line. In late July, the MACD line crossed below the signal line, generating a sell signal. Alternatively, if the MACD line crosses below the signal line, this may be interpreted as a sell signal. If the MACD line crosses above the signal line, this may be interpreted as a buy signal. Short-term buy-and-sell signals are generated by the MACD line and the signal line.
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