The MACD indicator, like the moving average indicator, is one of the commonly used indicator tools in actual stock trading. There are also many uses of MACD, whether it is a general golden cross buying point or a dead cross selling point, or a bottom deviation buying point or a top deviation selling point, all of which have very important analytical significance in practical use. Today, we will introduce a special use of MACD indicator: "Undead Bird Battle Method"
The strategy of the Undead Bird mainly occurs when the MACD indicator's fast and slow moving averages are consistent, just overlapping, or very close to forming a death cross but have not actually formed. At this time, the fast moving average DIF rises and the red bar becomes longer. This is the technical key point of the MACD indicator itself, which should be supported by the moving average indicator and trading volume when used in practical situations. The stock price has just broken through the 20 day moving average on the same day or has already run on the sub average with a bullish candlestick; The daily trading volume should be greater than the 5-day average, and the 5-day average volume should be greater than the 10 day average volume.
According to the technical points of the "Undead Bird Battle Method", it can be divided into two types: one is that the values of the fast and slow moving averages are consistent and just overlap, the fast moving average DIF rises, the red bar becomes longer, and at the same time, it breaks through the 20 day moving average and appears as a bullish candlestick, which is an opportunity to buy. As shown in the figure below, the DIF head is about to reach the DEA position when it turns downwards, but it does not overlap and then turns upwards. At this time, the red bar is also becoming longer, and a bullish candlestick with volume appears on the same day. The "Undead Bird Technique" should be noted that when the buy signal appears three times in a row, be alert to the top position and do not operate according to this technique again.
