Question: How to use the MACD indicator?

Question: How to use the MACD indicator?

Answer

There are many ways to use the MACD for trading. For example, at the intersection of lines, indicating a trend reversal. Similar, but more accurate, are the divergences of the extreme points of the price chart and the indicator. In this case, both moving averages and a chart can be used.Pay attention to the position of the chart relative to the zero line. For example, its growth above zero indicates the strength of the trend, and its fall indicates its imminent completion. The movement of moving averages into positive or negative areas with a zero crossing is also taken by many traders as evidence of the strength of the current trend.