MACD Energy Strategies

• MACD Fast Line and Signal Line
• MACD Buy and Sell Trading Signals
• MACD Whipsaws Fake Out Signals
• Generating Center-Line Crossover Signals
• MACD Classic Bullish and Bearish Divergence
• MACD Hidden Bullish and Bearish Divergence
• MACD Summary

MACD Center Line Crossover

The MACD indicator is one of the most widely and commonly used energies technical indicators available. MACD indicator is a momentum oscillator with some energies trend following characteristics.

MACD is one of the most popular indicators used in energies analysis. MACD indicator is used to generate energies signals using crossovers.

MACD plots the divergence and convergence of moving averages. MACD indicator is constructed using moving average analysis. MA Convergence/Divergence is a trend-following energies technical indicator. MACD indicator shows the correlation between two moving averages.

One moving average is of a shorter period and the other for a longer period of energies trading price bars.

MACD Indicator - MACD Indicator Technical Analysis

MACD indicator has a zero center line; values above zero line are bullish while those below zero are bearish.

In an upwards energies 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 energies trend is still bullish as shown below.

Do not sell as long as the MACD 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 energies examples illustrated and described below.

MACD Indicator Above Zero Mark - Bullish Trading Signal

In a downwards energies 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 energies trend is still bearish as shown below.

Do not buy as long as the MACD 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 energies examples illustrated and described below.

MACD Indicator Below Zero Center Line Mark - Bearish Trading Signal

When the energies trend is about to reverse the MACD lines start to move closer to each other, thus closing the gap.