#TradingTools101 When the DIF line crosses over upwards over the DEA line it brings a positive MACD meaning the trend is highly likely going to be bullish. The reverse also applies.

This can also be observed on KDJ when the K line crosses upwards over the D line. The reverse also applies.

Note that even though MACD and KDJ indicators move in the same direction they sometimes give contradictory signals as MACD is a lagging indicator showing market movement after it has already happened while KDJ is a leading indicator showing the market movement before it happens. Therefore experience and tact is key here.

KDJ predicts markets more accurately in the short term and can be very useful for scalpers looking to make quick entry and exit points.

It also supports the function of RSI showing overbought and oversold market conditions with the K and J lines.

KDJ can predict a fall or rise earlier especially in the smaller time frames which can be noisy for a trader looking to stick to an asset longer. MACD can be a bit steady in these predictions so tactfully using the two together is key.