MACD Stock Indicator Crossover Stock Trading Signals
MACD Center line crossovers generate stocks signals using the center line mark. The sentiment of the stocks trading market can be confirmed using the MACD center line crossovers. MACD stock trading crossover above the center line mark generates bullish stock market sentiment while crossover below the center line generates bearish stock market sentiment.
- When the Fast line crosses below the MACD Line (not center mark) it shows stock market momentum is slowing - this is not a reversal stock signal or a sell stock trading signal, wait for center mark crossover.
- When the Fast line crosses above the MACD Line (not center mark) it shows the stocks trading market momentum is slowing - this is not a reversal stock signal or a buy stock trading signal, wait for center mark crossover.
- The Center-Line crossover stock trading signals will be the best trading signals for confirming buy and sell stock trading signals.
Using the Stock chart in the stocks trading example explained below, when MACD fast line crossed below the zero center mark, the sell stock signal was confirmed and the stocks trading market sentiment changed to bearish - downwards stocks trend.
Also in the stocks trading example explained below when MACD fast line later crosses above zero center mark, a buy stock signal was generated and the stocks trading market sentiment changed to bullish - upwards stocks trend.
MACD Zero-Line Mark Crossover - Precisely When a Sell Stock Trading Signal and Buy Stock Trading Signal are Generated
Oscillation of the MACD Stock Indicator
The MACD Stock indicator is an oscillator indicator that moves up and down around a zero center line mark. The center-line is the neutral measurement, values above zero will indicate bullish stock market trend while values below indicate bearish stocks trend.
The MACD indicator is also used to indicate overbought and oversold levels. When the MACD reaches overextended levels, then stock is overbought or oversold. However, in a strong upward trending stock market stock prices will stay overbought in this case it's better to buy.
Also in a strong down stocks trending stock market its better to sell, because stock prices will stay in the oversold region for a long time.
Overbought conditions occur above the zero line while oversold conditions occur way below the zero mark.
MACD Overbought Region - Stock Trend Continuation Signal