MACD Cross-over Signals

MACD center line cross-overs generate signals using the centerline mark. The sentiment of the market can be confirmed using the MACD center line crossovers.

MACD crossover above the centerline mark generates bullish market sentiment while cross-over below the centerline generates bearish market sentiment.

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

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

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

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

Oscillation of the MACD Indicator

The MACD indicator is an oscillator indicator that moves up & down around a zero centerline mark. The centerline is the neutral measurement, values/readings above the zero mark will show bullish market trend while values/readings below indicate bearish market trend.

The MACD indicator is also used to show overbought & oversold levels. When the MACD reaches overextended levels, then a Index is overbought or oversold. However, in a strong upward market trending Indices market prices will stay overbought in this case its better to buy the Stock Index.

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

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

MACD Overbought Region - Indices Trend Continuation Signal

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MACD Cross-over Signals

Oscillation of the MACD Indicator