MACD Commodities Trading Strategies
- MACD Fast Line and Signal Line
- MACD Buy & Sell Trading Signals
- MACD Whipsaws Fake Out Signals
- Generating Center Line Crossover Signals
- MACD Classic Bullish & Bearish Divergence
- MACD Hidden Bullish & Bearish Divergence
- MACD Summary
MACD Center Line Crossover
The MACD indicator is one of the most widely & commonly used technical indicators available. MACD technical indicator is a momentum oscillator with some commodity trend following characteristics.
MACD is one of the most popular indicators used in commodity technical analysis. MACD indicator is used to generate commodity signals using crossovers.
MACD plots the divergence and convergence of moving averages. MACD indicator is constructed using moving average analysis. Moving Average Convergence/Divergence is a trend-following commodity technical indicator. MACD indicator shows the correlation between two moving averages.
One moving average is of a shorter period & the other for a longer period of commodities price bars.
MACD Commodity Indicator - MACD Commodity Indicator Technical Analysis
MACD indicator has a zero center line: values above zero line are bullish while those below zero are bearish.
In an upward commodity trend the shorter MACD line rises faster that the longer MACD line this creates a gap. In addition as long as the MACD indicator is above the center mark the commodity trend is still bullish as illustrated below.
Do not sell as long as the MACD Commodities Technical Indicator is above the Center Mark - this is bullish territory and it does not matter how it is moving as long as it is above the zero center mark, as shown on the commodity examples illustrated & described below.
MACD Commodities Technical Indicator Above Zero Mark - Bullish Trading Signal
In a downwards commodity trend the shorter MACD line falls faster than the longer MACD line this creates a gap. In addition as long as the indicator is below the center mark the commodity trend is still bearish as illustrated below.
Do not buy as long as the MACD Commodities Technical Indicator is below the Center Mark - this is bearish territory and it does not matter how it is moving as long as it is below the zero center mark, as shown on the commodity examples illustrated & described below.
MACD Commodities Technical Indicator Below Zero Center Line Mark - Bearish Trading Signal
When the commodity trend is about to reverse the MACD lines begin to move closer to each other, thus closing the gap.
