MACD Commodity Trading Strategies

• MACD Fast Line and Signal Line
• MACD Buy & Sell Trading Signals
• MACD Whipsaws Fake Out Signals
• Generating Center Line Crossover Trading Signals
• MACD Classic Bullish & Bearish Divergence
• MACD Hidden Bullish & Bearish Divergence
• MACD Summary

Bullish & Bearish Trading Signals

The MACD indicator is one of the most widely and oftenly used technical indicators available. MACD technical indicator is a momentum oscillator with some commodity trend following characteristics.

MACD indicator is one of the most popular indicators used in commodity technical analysis. MACD indicator is used to generate commodities signals using crossovers.

MACD plots the divergence and convergence of moving averages. MACD indicator is constructed using moving average analysis. Moving Average Convergence/Divergence is a trend-following commodities trading technical indicator. MACD indicator shows the correlation between two moving averages.

One moving average is of a shorter period & the other for a longer period of commodity price bars.

MACD Commodities Indicator - MACD Commodities Technical Indicator Technical Analysis

MACD indicator has a zero center line: values above zero line are bullish while those below zero are bearish.

In an upwards commodity trend the shorter MACD line rises faster that the longer MACD line this creates a gap. In addition as long as the MACD indicator is above the center mark the commodity trend is still bullish as illustrated below.

Do not sell as long as the MACD Commodity Technical Indicator is above the Center Mark - this is bullish territory and it does not matter how it is moving as long as it is above the zero center mark, as shown on the commodities trading example shown below.

MACD Commodity Technical Indicator Above Zero Mark - Bullish Trading Signal

In a downwards commodity trend the shorter MACD line falls faster than the longer MACD line this creates a gap. In addition as long as the indicator is below the center mark the commodity trend is still bearish as illustrated below.

Do not buy as long as the MACD Commodity Technical Indicator is below the Center Mark - this is bearish territory and it does not matter how it is moving as long as it is below the zero center mark, as shown on the commodities trading example shown below.

MACD Commodity Technical Indicator Below Zero Center Line Mark - Bearish Trading Signal

When the commodity trend is about to reverse the MACD lines start to move closer to each other, thus closing the gap.