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Bilgisayar Yazılım Rehberlik

MOVING AVERAGE CONVERGENCE DIVERGENCE

The medium-term trend indicator, macd, consists of the difference between the 26 and 12-period exponential moving average. In addition to the buy and sell signals taken from its intersection with the 9-period exponential moving average, which is called the trigger line, buy-sell signals can be received by crossing the zero level up and down. Macd below zero oversold is also interpreted by many analysts as macd overbought above zero. However, as it is a trend indicator, values above zero are now interpreted as the region where the upward trend begins. As with many indicators, discrepancies generate strong buy and sell signals. The chart below shows the buy-sell signals coming above and below zero.

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In order to show the importance of the zero level and the rising macd value, we color the periods when the macd rises above zero and follows the rising course in blue and the periods below zero in red with the help of the expert advisor.

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As seen in the graph, it produces very healthy results in the trending market. On the other hand, in the horizontal markets where there is no trend, false signals are noticeable. We see this in the regions we circled in the graphic below.

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As always, the maturity and trend understanding of the analyst are important here. The circled zones above are not a trend for a long-term trader and considering other rules of technical analysis, but a trading spot for a day trader who makes day trade.

Examples of buy and sell signals from disputes;

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As seen in the chart as a sell signal, while the price is making a new peak, the indicator cannot accompany this peak and decreases, followed by a decrease in prices.

As a buy signal, when the price makes a new bottom, the indicator is hovering above the previous bottom and then an uptrend begins.

The important point here is when the ascent will start. Okay, the indicator has started not to agree with the price, the negative or the positive, but how to choose a point to buy?
At this point, signals from other indicators for confirmation and simple rules of technical analysis come into play.
Our material is abundant; after all, history is repetitive.

AUTHOR:

Ali Erkan TANACIOĞLU

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The ratings contained herein are based on comments and personal opinions. These views may not be suitable for your financial situation and risk and return preferences.

Therefore, making an investment decision based solely on the information contained herein may not produce results in line with your expectations. "

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