MACD Technical Analysis Buy and Sell Trading Signals

Since the MACD indicator uses 26 and 12 Exponential Moving Average to plot, we shall compare these two EMAs with the MACD indicator to determine how these buy & sell silver signals are generated.

MACD XAGUSD Indicator - Example of MACD Technical Indicator

The MACD technical indicator is a leading indicator meaning it generates silver trading signals that are leading compared to xagusd price action as opposed to lagging indicators that lag behind the xagusd price.

Buy Silver Trade

A buy silver trade is generated when there is a MACD fast line crosses above the signal line. However, as with any leading indicator these silver signals are prone to whip-saws/fake outs.

To eliminate the whipsaws it's good to wait for confirmation of the buy or sell trading signals. The confirmation silver signal is when the two lines cross above the zero mark, when this happens the buy generated is a reliable xagusd trading signal.

In the xagusd trading example explained and shown below, the Moving average silver indicator generated a buy silver trading signal, before xagusd price started to move up. But it wasn't until the MACD moved above the zero line that the buy silver signal was confirmed, and the Moving Averages also gave a crossover silver signal. From experience it's always good to buy after both the MACD lines move above zero center line mark.

Where to Buy using MACD XAGUSD Indicator - Buy Trading Signal

Sell XAGUSD Trade

A sell silver signal is generated when there is a MACD fast line crosses below signal line. However, just like the buy silver trading signal, these are also prone to whipsaws/ fake outs.

To eliminate the whipsaws it's good to wait for confirmation of the sell silver signal. The confirmation is when the two lines cross below the zero mark, when this happens the sell generated is a reliable xagusd trading signal.

In the xagusd trading example explained and shown below, the Moving average generated a sell confirmed after MACD moved below the zero line at the same time that the Moving Averages gave a crossover xagusd trading signal.

Where to Sell using MACD XAGUSD Indicator - Sell Trading Signal