Hello everyone, I am Xiao Fu!
In trading, what is everyone's first recognition of the attached picture indicator? That's right MACD.
MACD is also one of the most frequently used indicators among many trading reference indicators. The MACD is actually developed from the exponential moving average and belongs to the trend indicator.
MACD uses the intersection of the short-term moving average DIF and the long-term moving average DEA as a signal. The cross signal generated by the MACD indicator is relatively slow (this is also a common problem of moving average indicators), but it can be used as a corresponding trading strategy, and the effect is quite acceptable. The MACD indicator that everyone comes with in MT4 has only one long-period moving average, so let's look at the two-line MACD, and everyone will be more clear.
So how to better use or better express MACD when first entering the foreign exchange market? In fact, it is very simple, because the essence of MACD we mentioned at the beginning can illustrate this point. In the picture above you will find three numbers 12, 26, 9 in the box. The relation of these three numerical values is: DIF is the average value of closing price of 12 days-26 days average value of closing price, DEA is the average value of 9 days of DIF. Then MACD is DIF-DEA*2, and then the result is expressed in columns.
When using MACD, you can call out the 12-day moving average and the 26-day moving average for comparison, and you will be more clear.
So many friends will ask, so how to express the 0 axis? I suggest here that you can use the 60-day exponential moving average as the 0 axis (everyone uses different parameters, this is just a suggestion). as shown in the picture
The above picture is also very clear. As for the entry point, it depends on your personal trading strategy. At the same time, you can add your own auxiliary indicators to distinguish the market and wait for the entry point. For example, my personal indicators that are more commonly used will be added.
Of course, the nature of MACD as an indicator has caused its inherent shortcomings, that is, the signal is slow, but as a trading strategy formulation, the effect is still acceptable.
Share it here today! If you have different suggestions or opinions, you can leave a message in the message area. You can also use the indicators you want to know, or the trading system, as long as Xiaofu understands it and thinks it can help you, I will write it in time! We grow together!
Investment is risky, and you need to be cautious when entering the market. The above is only personal opinion and does not represent market opinion!
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