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TA Challenge: How do you identify trends with moving averages?
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Tech Analysis To Identify Trend Using MACD ๐Ÿ“ˆ Day 2 (AMC As Example)

What is moving average convergence divergence (MACD)?
Aย trend-following momentum indicator that shows the relationship between twoย moving averagesย of a securityโ€™s price.


MACD is calculated by subtracting the 26-periodย exponential moving averageย (EMA) from the 12-period EMA.

9-day EMA of the MACD called the "signal line". It's plotted on top of the MACD line to function as a trigger for buy and sell signals.

NOTE: Actually u do not really need to know the calculation of MACD to use it.
The MACD indicator in the apps has already done those for u.
But, it's still good to know.

Now that u know the definition of MACD, let's apply it on the $AMC Entertainment (AMC.US)$ graph ๐Ÿ“Š . (Using mobile ๐Ÿ“ฑ version... damn, someone go do the desktop version for us.)

Select MACD (Tip: U double tap on graph from origin quotes to full screen the graph):
Tech Analysis To Identify Trend Using MACD ๐Ÿ“ˆ Day 2 (AMC As Example)
Extra informations:
U can go to "Indicators" setting to see the default setting for MACD in which I think nothing required changing (As shown in my previous post.)
Tech Analysis To Identify Trend Using MACD ๐Ÿ“ˆ Day 2 (AMC As Example)
So, how u use MACD?
Firstly, u will want check out @Meta Moo post on MACD:
Meta Moo :Technical Analysis Challenge Day 2 - MACD
(Not bad at all, that's generally the whole idea on how to use MACD .
Save me some troublesome work.
Though, I will still use it to apply on AMC as an example.)

P1:
Tech Analysis To Identify Trend Using MACD ๐Ÿ“ˆ Day 2 (AMC As Example)
(Monkey ๐Ÿ’ cannot draw ๐ŸŽจ straight lines too)

Orange line = DIF (MACD Curve)
Blue line = DEA (Signal Curve)
Pink = MACD
Can be confusing but all u need to know is:
Orange line cut above Blue line = possible up trend
Orange line cut below Blue line = possible down trend
Both lines intercept = a signal for buy/sell

P2:
Tech Analysis To Identify Trend Using MACD ๐Ÿ“ˆ Day 2 (AMC As Example)
Note: As u see in the above image, negative value = Down trend
Positive value = Up trend
This is used to apply on P1. I mentioned those trend in P1 is just a possible short-term trend.
(Usually, u may want to buy at the positive value to be more safe. You ownself decide.)

P3:
Tech Analysis To Identify Trend Using MACD ๐Ÿ“ˆ Day 2 (AMC As Example)
U may notice there're the green & the red.
I guess that's where u also determine a buy or sell.
I pay little attention to those.
Check out @Meta Moo for more informations (The moomoo tech analysis - TA ):
Meta Moo :Technical Analysis Challenge Day 2 - MACD

Yup, that's all from me, I guess.
You've just ๐ŸŽ“ from Milk The Cow Lesson on MACD if u have read ๐Ÿ“š all the way to here.

As always, DYODD first before investing

Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
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DYODD before investing ๐Ÿ‘Œ
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