MACD Indicator Crossover Signals

MACD Center line crossovers generate signals using the center line mark. The sentiment of the market can be confirmed using MACD centerline cross-overs. MACD forex crossover above the center line mark generates bullish market sentiment while crossover below the center line generates bearish market sentiment.

• When the FastLine crosses below MACD Line (not center mark) it shows market momentum is slowing - this isn't a reversal signal or a sell trading signal, wait for center-mark crossover.
• When the Fast line crosses above the MACD Line (not center mark) it shows the market momentum is slowing - this isn't a reversal setup or a buy trade signal, wait for center-mark crossover.
• The Center Line crossover signals will be the best signals for confirming buy & sell signals.

Using the chart in the example below, when MACD fast line crossed below the zero center mark, the sell signal was confirmed & the market sentiment changed to bearish - downwards trend.

Also in the example below when MACD fast line later crosses above zero center mark, a buy signal was generated and the market sentiment changed to bullish - upward trend.

MACD Zero-Line Mark Crossover - Precisely When a Sell Signal & Buy Trade Signal are Generated

Oscillation of the MACD

MACD indicator is an oscillator technical indicator that moves up and down around a zero center line mark. The centerline is the neutral measurement, values above zero will indicate bullish trend while values below indicate bearish market trend.

MACD indicator is also used to indicate over-bought & oversold levels. When the MACD reaches overextended levels, then a currency is overbought or oversold. However, in a strong upward trending market prices will stay overbought in this case its better to buy.

Also in a strong downtrend market its better to sell, because prices will stay in the over-sold region for a long time.

Overbought conditions occur above the zero line while over-sold conditions occur way below the zero mark.

MACD Overbought Region - Trend Continuation Signal

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