MACD Crude 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

Bullish and Bearish Trading Signals

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

MACD technical indicator is one of the most popular indicators used in oil technical analysis. MACD indicator is used to generate oil 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 oil 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 crude oil price bars.

MACD Crude Oil Indicator - MACD Crude Oil 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 oil 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 oil trend is still bullish as illustrated below.

Do not sell as long as the MACD Oil 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 oil example shown below.

MACD Oil Technical Indicator Above Zero Mark - Bullish Trading Signal

In a downwards oil 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 oil trend is still bearish as illustrated below.

Do not buy as long as the MACD Oil 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 oil example shown below.

MACD Oil Technical Indicator Below Zero Center Line Mark - Bearish Trading Signal

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