1. MACD Theory and Bollinger Bands and TD
1.1. MACD - 5 Points
MACD does not indicate trends; it is a convergence-divergence indicator that measures strength. It primarily reflects the strength of bulls and bears, as well as the indicators that show the transitions between strengths. It cannot be used to identify upward and downward trends.
MACD should also consider trend lines, such as the weekly K trend line, the trend line of peaks or troughs. Of course, divergence phenomena should also be monitored. However, MACD focuses on long cycles, such as the trend of the weekly K.
1.1.1. Misleading Signals, Long Cycle
Although MACD is the king of indicators, it often misleads, so be cautious and combine it with KDJ for comprehensive judgment.