Technical - Moving Average Convergence-Divergence (MACD)

MACD turns two trend-following indicators, moving averages, into a momentum oscillator by subtracting the longer moving average from the shorter moving average.

A bullish centerline crossover occurs when MACD moves above the zero line to turn positive. A bearish centerline crossover occurs when MACD moves below the zero line to turn negative.

MACD: 21, 55, 8
Stochastics: 8, 3, 5

The term stochastic refers to the location of a current price in relation to its price range over a period of time.This method attempts to predict price turning points by comparing the closing price of a security to its price range.



1. MACD trading in opposite direction of MKT signal that trend is due for reversal.
2. BUY: MACD line X above signal line
SELL: MACD line X below signal line

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