What is moving average convergence divergence (MACD)? Atrend-following momentumindicator that shows the relationship between twomoving averagesof a security’s price.
MACD iscalculated by subtractingthe26-periodexponential moving average(EMA)fromthe12-period EMA.
9-day EMA of the MACDcalled the"signal line". It's plotted on top of the MACD line to function as atriggerforbuyandsellsignals.
NOTE: Actually u do not really need to know the calculation ofMACDto 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 📊 . (Using mobile 📱 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):
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 myprevious post.)
So, how u use MACD? Firstly, u will wantcheck out@Meta Moopost 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 toapply on AMCas an example.)
P1:
(Monkey 🐒 cannot draw 🎨 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 linecutaboveBlue line= possibleup trend Orange linecutbelowBlue line= possibledown trend Both linesintercept= a signal forbuy/sell
P2:
Note: As u see in the above image,negativevalue=Down trend Positive value=Up trend This is used to apply onP1. I mentioned those trend inP1is just apossible short-termtrend. (Usually, u may want tobuy atthepositive valueto bemore safe. You ownself decide.)
P3:
U may notice there're thegreen& thered. I guess that's where u also determine abuyorsell. I pay little attention to those. Check out@Meta Moofor 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 🎓 from Milk The Cow Lesson on MACDif u have read 📚 all the way to here.
Meta Moo : very simple, concise and beautiful explained![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
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Milk The Cow OP Meta Moo : Ty![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)