How To Use MACD Indicator ?

 ?How To Use MACD Indicator

The indicator definition:

is a set of indicators of the fluctuation (Oscillators), used to predict the new trend, it expects the trend is rising or falling by measuring the difference between  Furnishers moving with the arithmetic mean is simple.

The components of the cursor:

macd lines (bars): the Histgram put two lines of the output of the arithmetic average of sorrow and reflects the output of this suggestion is Histgram bars.

The signal line represents the simple moving average line expressed moving histgram released interfere with bars.

The zero line represents the axis of the balance between the levels of purchase and sale (above zero levels of purchase, under zero levels of sale).

The mechanism of its work:

move macd lines (bars ) over the zero line here as the levels of the purchase and sale here as undefined levels of select it directions whether the market direction or be  Retrenchment of momentum and parentage, and moving the line of simple average bars histgram cut with the ends and identify points of the reflection of the trend.

Ways to make use of the cursor:

1) The presence of macd lines by the Signal Line: When the ends of the macd lines (bars) of Histegram edna signal line to the top of the Signal Line, the buy signal, when the ends of the macd lines (bars histgrame) from the top of the Signal Line to edna from the signal line, the sell signal, the following picture shows an example buy this way:

Note the points of transition ends lines from the lowest to the highest line of the reference point is the blue box on the index and therefore the presence of levels of purchase represented  blue on the first photo and then the rise of the price.