For investors, MACD is a commonly seen indicator, and I believe many investors also find it very practical. However, not many investors are truly active in using MACD. What are the chances of using MACD to grasp buying and selling points? If you see MACD with a golden cross and buy, and a dead cross and sell, I believe I have no chance to write about it, and you will not have a chance to read this article either - it has long been eliminated by the market. It is better to use the mechanical use of golden/dead cross signals to buy and sell than to use coins to decide buying and selling, which will be more effortless and the effect will not be much worse.

Only by using the golden/dead cross signal emitted by MACD under certain rules can the success rate of the signal be greatly improved.

The basic usage of MACD:

        1. MACD golden cross: DIFF breaks through DEA from bottom to top, indicating a buy signal.

        2. MACD dead cross: DIFF breaks through DEA from top to bottom, indicating a sell signal.

        3. MACD green to red: MACD value changes from negative to positive, and the market shifts from short to long.

        4. MACD red to green: MACD value changes from positive to negative, and the market shifts from long to short.

        5. When both DIFF and DEA are positive, that is, above the zero axis, the overall trend is a bullish market. If DIFF breaks through DEA upwards, it can be used as a buy signal.

        6. When both DIFF and DEA are negative, meaning they are both below the zero axis, the overall trend is a bearish market. If DIFF falls below DEA, it can be used as a sell signal.

        7. When the DEA line deviates from the K-line trend, it is a reversal signal.

        8. DEA has a high error rate during consolidation, but if combined with RSI and KDj indicators, it can make up for its shortcomings appropriately.

The divergence between the intersection of DIF and MACD and the stock price or index.

In addition, there are these areas that need to be noted in the operation of MACD!

1、 As for individual stocks, the values of DIF and MACD line indicated on the MACD vertical axis are very important. Generally speaking, a dead cross that appears when the MACD indicator is at a high level is often effective. The high level set for this parameter is+1.5 or above, and some super strong stocks can reach the range of 3 to 6. As long as a dead cross appears in these ranges, the price can often be bearish on the middle line, during which there will usually be a rebound market. However, until a new cross appears, we can remain bearish.

2、 As for individual stocks, the effective interval for the golden cross between the MACD indicator DIF and the MACD line should be below -0.45 on the vertical axis, otherwise it is not significant. However, the trend of some super strong stocks may have exceptions, which requires the use of other indicators for comprehensive judgment.

3、 Generally speaking, when the DIF and MACD lines continue to climb upwards and move away from the red bar, while the red bar continues to contract or even shows a green bar, one should be alert to the occurrence of a high-level dead cross in the indicator and a turn in the price trend.

4、 The use of this indicator particularly emphasizes the deviation relationship. When the price continues to rise and reaches a new high, if the MACD indicator fails to reach the previous high, it means that the price may fall back at any time; The upward force is not strong. Similarly, the situation can also be summarized when prices continue to decline.

5、 The death of this indicator occurs before the price falls, while the gold crossover generally occurs after the price rises.

6、 The judgment of some oversold strong stocks should rely on the comprehensive judgment of the moving average system (55 day, 120 day, 250 day).