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MACD
2014-12-31
MACD is composed of two parts by the positive and negative difference (DIFF) and the similarities and differences between the average (DEA),
• (1) DIF and MACD above 0, belongs to a bull market trend. DIF break up MACD crossover point can be used as down, can only be seen as the market's correction, can not be seen as the beginning of a bear market.
• (2) On the other hand, DIF and MACD below 0, belong to the bear market trend. DIF down below the MACD, can be used to sell, if the DIF break up MACD, is a high-priced to sell to cover the phenomenon can also be seen as a minority investor in the low-cost tempted to take over, just go for short-term buying.
• (3) the difference between the cattle from: gold appear two or three recent lows, while the MACD does not emerge with a new low, can be used to buy;
• (4) Bear high difference: the price of gold appears two or three recent highs while the MACD does not meet the new high point, can be used to sell;
• (5) MACD can be used with RSI (Relative Strength Index) and KD (stochastics), mutually compensate for their shortcomings;
• (6) high-grade secondary down the cross to be dropped, low cross to be jumped up twice.