As a trend indicator, MACD can determine the medium-term trend.

Basic Usage

①Divergence method (most commonly used):

Tips: When the K-line trend is higher than the previous peak, while the MACD trend is lower than the previous peak, it is a top divergence; when the K-line trend is lower than the previous peak, while the MACD trend is higher than the previous peak, it is a bottom divergence.

Conclusion: Bottom divergence is bullish; top divergence is bearish.

② Golden Cross and Death Cross Method (Trend Method):

MACD Golden Cross: Bullish; MACD Dead Cross: Bearish

Note: For MACD golden cross and dead cross, we tend to look at a larger cycle, 4 hours is best, daily or 30 minutes are also acceptable.

③ Crossing 0 axis method (DIF line):

DIF line crosses below 0: Bearish

DIF line crosses 0 upwards: Bullish

The DIF line is composed of the first two parameters 12 and 26 of the three parameters of MACD (12, 26, 9).

Ways to improve your winning rate

1. How to improve the winning rate by crossing the 0 axis

(1) When the DIF line breaks through the 0 axis from bottom to top, it indicates that a bullish market is about to form quietly. It is the first relatively safe buying point in the medium and long term. Investors can buy on dips. When the DEA line breaks through the 0 axis from bottom to top, it indicates that the bullish market is gradually getting stronger. It is the second relatively safe buying point in the medium and long term. At this time, investors can buy on the rise.

(2) When the DIF line falls below the 0 axis from top to bottom, it indicates that a bearish market is about to form quietly, which is the first relatively suitable selling point in the medium and long term. Investors should resolutely choose to distribute at high prices. When the DEA line breaks through the 0 axis from top to bottom, it indicates that the bearish market is gradually getting stronger. This is the second relatively suitable selling point in the medium and long term. At this time, investors should short sell their positions.

2. After the super large order appears

(1) Divergence can strengthen signal authentication;

(2) Golden cross can strengthen signal authentication.