The MACD line is the difference between the DIF line and the DEA line, which corresponds to the line in the chart
The basic analytical method of MACD is
- When DIF breaks through the DEA from the bottom up, forming a gold cross, both white DIFs are formed by wearing yellow DEAs, for the buy signal
- When DIF breaks through the DEA from top to bottom, forming a dead cross, both white DIFs under the yellow DEA form a cross, for the sell signal
- Top divergence: when the market curve gradually rises, and DIF and DEA are not synchronously rising, but gradually falling, with the stock price trend to form a top divergence, foreshadowing the market trend is about to fall
- Bottom divergence: when the market curve gradually downwards, and DIF and DEA is not synchronous decline, but gradually rise, and the stock price trend to form a bottom divergence, foreshadowing the market trend is about to rise