MACD Signal Line Crossover Bearish

What is the definition of MACD Signal Line Crossover?

The MACD is the difference between a 26-day and 12-day exponential moving average of closing prices. A 9-day EMA, called the "signal" line is plotted on top of the MACD to show buy/sell opportunities.

The basic MACD trading rule is to sell when the "slow line" of the MACD falls below the faster 9-Day EMA line (known as a "signal line crossover") and similarly, a buy signal occurs when the MACD rises above its signal line.


Stockopedia explains MACD Signal Line Crossover...

An important point to remember is that the MACD is regarded as most effective in wide-swinging trading markets, just like any moving average crossover. Its weakness is that, when the market is trendless, the MACD tends to generate lots of false / unprofitable buy and sell signals

You can read more about the MACD Strategy here.



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