MACD | Moving Average Convergence Divergence

If you do not know MACD read on.

MACD – Moving Average Convergence Divergence

MACD stands for Moving Average Convergence Divergence, the MACD line (red line or called fast line) and MACD signal line (blue line, or called slow line).

1. MACD bullish signal when red line crosses above the blue line or MACD line crosses above zero line.
2. MACD bearish signal when blue line crosses below red line or MACD line crosses below zero line.

MACD could have the following possible signals

1. MACD line crosses above MACD signal – Bullish trend
2. MACD line crosses above zero line – Bullish trend
3. MACD Histogram +ve Divergence – Bullish trend
4. MACD line crosses below MACD signal – Bearish trend
5. MACD line crosses below zero line – Bearish trend
6. MACD Histogram -ve Divergence – Bearish trend
7. Volume traded greater 500,000 shares

The scanner helps to shortlist the stock for further technical analysis to determine the entry and exit point, and the risk involved.

Moses

AmiBrokerAcademy.com