MACD Oil Technical Indicator Crossover Trading Signals

MACD Center line crossovers generate crude oil signals using the center line mark. The sentiment of the crude oil market can be confirmed using the MACD center line crossovers. MACD oil crossover above the center line mark generates bullish oil market sentiment while cross-over below the center line generates bearish oil market sentiment.

• When the Fast-line crosses below MACD Line (not center mark) it shows oil market momentum is slowing - this is not a reversal oil signal or a sell oil signal, wait for center mark cross-over.
• When the Fast line crosses above the MACD Line (not center mark) it shows the oil market momentum is slowing - this is not a reversal oil signal or a buy oil signal, wait for center mark cross-over.
• The Center-Line crossover oil signals will be the best trading signals for confirming buy & sell crude trading signals.

Using the Oil Trading chart in the oil example shown below, when MACD fast line crossed below the zero center mark, the sell oil signal was confirmed and the oil market sentiment changed to bearish - downwards crude oil trend.

Also in the oil example shown below when MACD fast line later crosses above zero center mark, a buy oil signal was generated and the oil market sentiment changed to bullish - upwards crude oil trend.

MACD Zero-Line Mark Crossover - Precisely When a Sell Oil Signal and Buy Oil Trading Signal are Generated

Oscillation of the MACD Indicator

The MACD Oil indicator is an oscillator indicator that moves up and down around a zero center line mark. The center-line is the neutral measurement, values above zero will indicate bullish oil market trend while values below indicate bearish crude oil trend.

The MACD indicator is also used to indicate overbought and oversold levels. When the MACD reaches overextended levels, then a oil is overbought or oversold. However, in a strong upward trending oil market prices will stay overbought in this case it's better to buy.

Also in a strong down oil trending oil market its better to sell, because crude oil prices will stay in the oversold region for a long time.

Over-bought conditions occur above the zero line while over-sold conditions occur way below the zero mark.

MACD Overbought Region - Oil Trend Continuation Signal