# Explain the technical indicators of foreign exchange MACD indicator

What How Forex Rebates Work the premiumrebateforex bestforexrebateratesdicator?MACD is the exponential smoothing isotropic moving average, mainly used to judge the strength, direction, energy cashbackforexreview cashback forex cycle of price or index changes, so as to better grasp the timing of buying and selling MACD indicator consists of two curves and a set of red and green bars in the two curves fluctuate more frequently is the DIFF line, more gentle is the DEA line red and green bars is the MACD bar line MACD bar line value is the DIFF value minus DEA value of the difference between two times MACD value is positive when the performance of zero. The red and green bars are the MACD bars. The MACD bar value is two times the difference between the DIFF value minus the DEA value, and when the MACD value is positive, it is expressed as a red bar above the zero axis. When the MACD turns from positive to negative, it is a signal to sell When the MACD changes at a large angle, it means that the gap between the fast moving average and the slow moving average is widening very quickly, representing a shift in the general trend of the market MACD should be applied by first calculating the fast (usually 12-day) moving average and the slow (usually 26-day) moving average using these two values as measurements The difference between the two (fast and slow lines) is based on the so-called difference in value (DIF), that is, the 12-day EMA value minus the 26-day EMA value Therefore, in a sustained upward trend, the 12-day EMA is above the 26-day EMA and the positive difference (+DIF) will become larger and larger Conversely, in a downward trend, the difference may become negative (-DIF), also becoming larger and larger until the market begins to turn, positive or negative difference The MACD reversal signal is defined as the 9-day moving average of the difference value (9-day EMA) MACD index smoothing dissimilarity moving average for the two long and short smoothing averages whose buying and selling principles are: 1, DIF, MACD above 0, the trend is long market DIF upward breakthrough MACD, can do buy; if DIF Downward breakthrough MACD, only the original single position can be closed not new sell orders into the field 2, DIF, MACD below 0, the trend is a short market DIF downward breakthrough MACD, can be sold; if DIF upward breakthrough MACD, only the original single position can be closed not new buy orders into the field 3, formula: yellow line (DIF) = closing price of 12 days smoothing moving average minus 26 days smoothing moving average White line (DEA) = 9-day smoothed moving average MACD indicator is created in the late 1970s, used to track the trend of the stock price technical analysis tools MACD indicator relative to other indicators for simple construction, and is in addition to moving averages other than all indicators, tracking the trend of the longest indicator so it will be widely used in the world of financial products from years of different investors on the MACD use of a phenomenon found that many complex indicators and techniques can be simpler, while some seemingly simple indicators can clearly indicate the relationship between indicators and stock prices, but no one asked for, especially the divergence relationship, it is possible that you have learned a lot of skills, methods, and forget over time, but the divergence idea must not be forgotten, because it is an indication of the operation of the stock price can be said to be the most classic Because the MACD indicator is used by the majority of investors, used to determine the price trend situation one of the tools, from a certain point of view, the MACD indicator changes will also lead to changes in investor behavior, so the study of MACD indicators on the study of the psychology of the market traders group has important significance using MACD indicators should pay attention to which points?1, MACD indicators some delayed daily level in the MACD indicator is not applicable to short-term operations. To compensate for this disadvantage, short-term operators can refer to the 15-minute level or 60-minute level MACD indicator to make judgments. 2, MACD indicator stability can give relatively stable buy and sell signals in a long period of time, therefore, medium and long term investors can refer to MACD indicator to carry out specific operations. 3, MACD indicator in the price The MACD indicator is not very meaningful in the market in the medium and long term up or down market, investors use MACD indicator will be more effective but in the price of large shocks in the market, MACD indicator is not too much reference value for investors operations a: MACD indicator super tough application Before we start to analyze the MACD indicator, I think we must first ideologically agree with the following two points, otherwise the following Research is meaningless 1) the trend over a period of time can be grasped; 2) each indicator has a valid time, no indicator will always be valid your role is to figure out when the indicator is valid first from the MACD indicator formula: DIFF: EMA (CLOSE, SHORT) - EMA (CLOSE, LONG); DEA: EMA (DIFF, M); MACD:3*(DIFF-DEA), COLORSTICK;Translate the formula into text as follows:First sentence:DIFF=Daily deviation=Smoothed average price of short-term (12 days) averages - Smoothed average price of long-term (26 days) averages; When the averages are arranged in a long form, DIFF will appear to rise, otherwise it will fall Second sentence:DEA=Average deviation=(9 days ) the smoothed average price of the current days deviation third sentence: MACD = bar = (current days deviation - average deviation) X magnification 3 times in this formula, the short-term trend refers to 12 days, the long-term trend refers to 26 days their daily smoothed average price of the current days deviation is connected to the white line DIFF, and then the 9-day smoothed average price of the current days deviation is connected to the yellow line DEA when DIFF gold cross DEA line means: the smoothed average price of the 12th day minus the 26th day of the smoothing of the average price of the day is greater than the previous 9 days of smoothing, the trend turns into a long market when the DIFF dead fork DEA line means that the 12th day of the smoothing of the average price minus the 26th day of the smoothing of the average price of the day is less than the previous nine days of smoothing, the trend turns into a short market because it is made with the principle of averaging, then the long and short alignment is to determine the long and short trend according to the 0 axis is a long-short balance line DIFF and DEA in the zero axis is above the long market, in the zero axis is below the short market in the zero axis is oscillating consolidation market, that is, the balance of the city balance is for the breakthrough of the unilateral city to do the preparatory work MACD is in essence a modified average system, after a number of smoothing, downplaying the single K-line jump, indicating the direction of the current trend its main feature is robustness this is not This not overly sensitive feature is too slow for short term, so short term operation is not in the scope of this discussion but thats why MACD can filter out the disorderly noise of the market, so that it gives relatively stable trend direction in the market with a large period and a large number of K-lines. The MACD bottom divergence occurred successively on the weekly, weekly and monthly charts, which is the divergence resonance that marks the arrival of a reversal So is it the simultaneous divergence of these different cycles that determines that the dollar will turn from weakness to strength? ------ is wrong! Divergence indicators will never determine the trend, the trend can only be determined by each K-line and K-line combination itself, that is, only the daily trend itself will determine the trend is always the K-line decision indicators divergence, and divergence is only a reflection of the state of the K-line ------- dollar index has been weak no longer weak will turn strong if you apply HowForexRebatesWork theory, 20041230 dollar index is running in the fifth The fifth microwave of the fifth medium wave of the fifth small wave of the big wave! These five waves are running at the same time, will be the beginning of a big turnaround or another way of saying: the number of waves low hand or wave understanding is only up 5 waves, down 3 waves of people, must have been so roundabout wave dizzy above is a large level of reversal, if only 4 hours and 1 hour chart at the same time divergence, that is a small level of reversal, in the hourly chart, such a reversal can be a day or a few days A good grasp of the characteristics of the divergence can enable us to number the wave low hand or do not understand the wave theory traders can also escape the top of the bottom two) types of divergence A) driving divergence (B) adjustment divergence (A) driving divergence: in the driving wave 1/3/5 wave divergence occurs, the conventional will only be in the 5th wave when the divergence once but if the driving wave is an extended wave, the final triangle, or five waves after the irregular top. This will often occur twice or three times the divergence trend is stronger, the more the number of divergences, but rarely see four or more divergences drive multiple divergence types: 1) extended wave divergence 2) terminal triangle divergence 3) irregular top divergence 1) extended wave divergence third / five major waves can occur to extend, the following example is the trend of the dollar in 2005, the third wave to extend the wave, currently is running in the fifth wave is also going to extend the wave this topic related pictures are as follows: 2) tilted triangle divergence tilted triangle its structure is five waves, but its special point is that the bottom of 4 waves can enter the 1 wave range 3) irregular top divergence is B wave over the fifth wave will also lead to secondary divergence, because the previous fifth wave has diverged once forexbang www. waihuibang.com > forex technical analysis www.waihuibang.com/fxschool/technical/B)Adjustment divergence adjustment wave is a divergence, if more than two divergences will indicate that the trend will develop into Push wave ------ that is not an adjustment wave 1) sawtooth adjustment divergence 200509 of the two-month adjustment wave belongs to the four-wave adjustment, wave shape ABC, also occurred divergence 2) platform-shaped adjustment divergence divergence can be used both for counter-trend operation, but also for homeopathic operation. Just on the MACD, the premise of the big trend up, the zero axis above the golden fork is the most secure and sure but if you are doing short term, the zero axis below the golden fork is also a time to buy, whether it is a good time to buy, but also depends on the operation of the exchange rate at the time, for example, is the end of consolidation, or still in the consolidation phase