Hopes this helps. Some basic explanation re macd's below.
The MACD is a centred oscillator and is unique in that has both trend following and momentum characteristics. The MACD is the difference between a slow EMA and a fast EMA (typically a 26-day and 12-day EMA). An EMA of the MACD (usually 9-day) is plotted on top of the MACD to act as the signal to highlight buy/sell opportunities. A histogram is usually displayed as well, representing the difference between the MACD and signal lines. This is helpful in identifying centreline crossovers and divergences more easily.
Three commonly used interpretations of the MACD are:
Crossovers The basic rule is to sell when the MACD crosses below the signal and conversely, buy when the MACD crosses above the signal.
Overbought / Oversold Conditions When the MACD rises dramatically it is quite possible the security is overbought and will soon return to a more realistic level. Reversing these conditions will indicate it is likely the security is oversold.
Divergences When the MACD diverges from the security's price it can indicate the end of the current trend. If the MACD makes new lows yet the price does not, a bearish divergence occurs. The opposite of these conditions (MACD makes new highs and price does not) indicates a bullish divergence. The divergences are more apparent when they occur around the overbought / oversold levels.
RRS Price at posting:
4.7¢ Sentiment: Hold Disclosure: Held
