In financial market investment, the MACD indicator, as a means of technical analysis, has been recognized by the majority of investors. However, how to use the MACD indicator to achieve the best investment income is little known. Next, I will explain the operation of the MACD indicator in detail for you.
The two lines of DIF and DEA in the MACD indicator, according to their positions above and below the zero axis, and whether there has been a dead cross before the golden cross and the position where the dead cross occurred, there are eight types of graphics, which are: bergamot upward, Ducklings come out of the water, rise to the sky, swans spread their wings, aerial cables, aerial cable cars, submarine cables and sea fishing.
1. The bergamot upwards
Definition: After the golden cross between DIF and DEA, it goes up against the price rise, and then goes down with the price callback. Turning upward, it forms the upward shape of the bergamot.
Practical significance: In the bergamot upward pattern, the DIF line goes up again before it reaches DEA after a brief pullback, indicating that the market’s upward momentum is very strong, and the price will have a larger upward trend in the future. Investors can go up again in the DIF time to buy.
Best buying point: When DIF forms an inflection point of heavy volume, it is the best buying point.
Actual combat legend:
2. The ducklings come out of the water
Definition: This form is the bottom form that appears when the selling price is exhausted after the price bottoms out. When the DIF is below the 0-axis after the golden cross DEA line, it does not cross the 0-axis or a little above the 0-axis before returning to below the 0-axis , and then dead cross DEA downwards, and then golden cross the DEA line again a few days later. At this time, the MACD indicator forms a duckling out of water pattern.
Practical significance: After the price rebounded, the main force suppressed the callback again, and after confirming the stability of the bottom, it pulled up and rebounded again. The main reason is that the dealers use the method of suppressing and washing the dishes to build a second bottom. MACD forms a horizontal figure-of-eight pattern near the zero axis.
The best buying point: After the MACD completes the 8-figure structure, the second MACD golden cross direction is not the best buying point on the day.
Actual combat legend:
3. Prosperity
Definition: Flat progress means that the DIF line crosses the DEA line above the 0 axis, then crosses the 0 axis, and then crosses the DEA line on the 0 axis or above the 0 axis.
Practical significance: The formation of this pattern means that the price is consolidating on the way of bottoming out, and some are bottoming patterns, showing an upward trend. It should be understood as a signal of active intervention. When a buying point appears, one should decisively enter the market and hold a position to rise.
Best buying point: When DIF and DEA are making a golden cross near the zero axis, it is not the best buying point on the day when the volume can increase.
Actual combat legend:
4. The swan spreads its wings
Definition: DIFF is below the 0-axis golden cross DEA line, and then pulls back without crossing the 0-axis, and moves closer to DEA. The MACD red column shortens, but reverses upward again without the dead fork DEA. At the same time, it cooperates with the MACD red column to lengthen, forming The shape of a swan spreading its wings.
Practical significance: The formation of this pattern is mostly a bottom pattern, which is the bottom pattern that appears when the selling price is exhausted after the price bottoms out. It should be understood as the main position building area, and you can choose an opportunity to intervene.
The best buying point: DIF Jincha DEA, and accompanied by the increase in volume, is the best time to buy.
Actual combat legend:
5. Aerial cables
Definition: After the DIF runs on the zero axis for a period of time after the golden cross DEA on the zero axis, the price adjusts and the DIF also pulls back downward. A new rally begins when they separate and diverge long, forming a buying opportunity.
Practical significance: The emergence of this pattern is mostly caused by the upside consolidation and the main force washing the market. After a short period of consolidation on the way up, the price presents a strong upward attack pattern. It should be understood as a signal of active intervention and decisive buying.
Best buying point: When MACD forms a cable car (cable) technical form, DIF and DEA once again complete the golden cross, and the day when the volume can increase is the best buying point.
Actual combat legend:
6. Aerial cable car
Definition: The DIFF line crosses the DEA line above the 0 axis, but does not cross the 0 axis. After a few days, it crosses the DEA again above the 0 axis.
Practical significance: The emergence of this pattern is mostly due to the upside consolidation and the main force washing the market. After a short-term adjustment of the price, it shows a strong upward momentum, which can be understood as a signal of active intervention. You can buy decisively. If you can continue to increase the volume, you can firmly watch many.
Actual combat legend: Since the shape of the aerial cable car and the aerial cable are very similar , the actual combat diagram is omitted here, and interested friends can find it by themselves.
Special reminder: The main difference between aerial cable and aerial cable car is that it does not have a dead fork, but aerial cable car has a dead fork! The same point is: their moving average systems are often arranged in multiple heads. In actual combat, due to the relatively active trading in the foreign exchange market, the same form can be adopted for the judgment of aerial cable cars and aerial cables, that is, the double-line entanglement of DIF and DEA.
7. Submarine cables
Definition: The submarine cable usually refers to the MACD indicator running below the 0 axis for a long time, after the white DIF line and the yellow DEA line form a golden cross (the golden cross below the 0 axis), the performance of the two lines did not rise very strongly , on the contrary, it is bonded with the yellow DEA line to form a straight line, and the values are almost equal. Once the two lines start to show long divergence, it is an opportunity to buy.
Practical significance: Generally, when the submarine cable form below the 0 axis is formed, it is usually a bottom form that appears when the price has fallen to the bottom and the selling is exhausted. At this time, it can be understood as choosing an opportunity to intervene. For example, when a buying point appears at this time, decisively intervene, and the shareholding is expected to rise.
The best buying point: When the yellow and white lines of the macd indicator are separated below the 0 axis, the day when the volume can be increased at the same time is the best buying point.
Actual combat legend:
8. Sea fishing for the moon
Definition: Haidilaoyue shape means that DIF and DEA have a second golden cross below the zero axis.
Practical significance: Haidilao’s moon shape indicates that the downward trend has come to an end, and the market bottom has been completed, and the price has begun to bottom out, and investors can choose the opportunity to buy.
The best buying point: When the MACD forms a second golden cross below the zero axis, it is not the best buying point on the day when the volume can increase.
Actual combat legend:
Write at the end:
1. MACD is just an indicator tool, so don't rely too much on it.
2. In the foreign exchange market, the trading volume is relatively vague. You can learn from the changes in the MACD column and understand it as the change in trading volume. You think that whether each form can be operated or not, volume is a very important aspect.
3. The trend is king. Before using these eight bullish patterns, it is best to know the current market trend.
4. In the process of application, how far the market can go depends on the time period and whether there is a deviation.
5. Only eight rising patterns are mentioned here. Those who are interested can deduce eight falling patterns. In this way, sixteen patterns can be formed.
6. For unfinished matters, leave a message to discuss.
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