MACD Trading Indicator Crossover Trading Signals

MACD Center line crossovers generate trading signals using the center line mark. The sentiment of the Indices market can be confirmed using the MACD center line crossovers.

MACD Stock Indexes crossover above the center line mark generates bullish Stock Indices market sentiment while crossover below the center line generates bearish Stock Indices market sentiment.

• When the Fast line crosses below the MACD Line (not center mark) it shows Stock Indexes market momentum is slowing - this is not a reversal Indices signal or a sell Indices signal, wait for center mark crossover.
• When the Fast line crosses above the MACD Line (not center mark) it shows the Indices market momentum is slowing - this is not a reversal Indices trading signal or a buy Stock Indexes trading signal, wait for center mark crossover.
• The Center-Line crossover Stock Indices signals will be the best trading signals for confirming buy & sell Indices signals.

Using the Indices trade chart in the example below, when MACD fast line crossed below the zero center mark, sell Indices trading signal was confirmed & the Indices market sentiment changed to bearish - downward Stock Indexes trend.

Also in the example below when MACD fast line later crosses above zero center mark, a buy Stock Indexes trading signal was generated & the market sentiment changed to bullish - upward Stock Indexes trend.

MACD Zero-Line Mark Crossover - Precisely When a Sell Signal & Buy Signal are Generated

Oscillation of the MACD Indicator

The MACD Stock Indexes indicator is an oscillator indicator that moves up and down around a zero center line mark. The center-line is the neutral measurement, values above zero will indicate bullish Stock Indices market trend while values below indicate bearish Stock Indices market trend.

The MACD indicator is also used to indicate overbought and oversold levels. When MACD reaches overextended levels, then a index is overbought or oversold. However, in a strong upward trending Stock Indices market prices will stay overbought in this case its better to buy the index.

Also in a strong down trending Stock Indices market its better to sell the index, because prices will stay in the oversold region for a long time.

Overbought conditions occur above the zero line while oversold conditions occur way below the zero mark.

MACD Overbought Region - Stock Indexes Trend Continuation Signal