Image = MACD signal line in action.
MACD signal line key points is about a clear understanding of how to
If the indicator has a negative slope (MACD indicator is declining), MACD
will remains below the signal line. Conversely, MACD is above its signal
Consequently, one ought to check MACD's slope to ascertain whether MACD
is becoming bearish or bullish. Indeed, it is not sufficient to rely on MACD signal
line crossovers. Look and check if the indicator is declining or not.
In fact, there are times when there is a divergence between MACD slope and
the price is below its common sense trend line. Similarly, when the indicator has a positive slope, it means that the price is currently above the common sense trend line or above a positive slope trend line.
not buy straight away when a bullish crossover occurs or sell right away when a bearish
a bullish chart pattern. For example, a double bottom chart pattern is in place at the same
time when MACD indicator just crosses above the signal line. Conversely, the best bearish crossovers
take place after a bearish chart pattern (example: double top chart pattern).