How do you read two lines in MACD?

When the MACD line crosses from below to above the signal line, the indicator is considered bullish. The further below the zero line the stronger the signal. When the MACD line crosses from above to below the signal line, the indicator is considered bearish. The further above the zero line the stronger the signal.

How do you use MACD with crossing MACD line and signal line?

If the MACD crosses above its signal line following a brief correction within a longer-term uptrend, it qualifies as bullish confirmation. If the MACD crosses below its signal line following a brief move higher within a longer-term downtrend, traders would consider that a bearish confirmation.

Which line is the signal line in MACD?

The signal line is a 9-day EMA of the MACD Line. As a moving average of the indicator, it trails the MACD and makes it easier to spot MACD turns. A bullish crossover occurs when the MACD turns up and crosses above the signal line. A bearish crossover occurs when the MACD turns down and crosses below the signal line.

What does Purple Line in MACD mean?

The blue line is called the MACD Line, while the orange line is called the Signal Line. The purple bars represent the MACD histogram. If you use this indicator on your trading platform you will see that the default values are 12, 26, and 9, but you can change them depending on your trading style.

What are the best MACD settings?

The standard setting for MACD is the difference between the 12- and 26-period EMAs. Chartists looking for more sensitivity may try a shorter short-term moving average and a longer long-term moving average. MACD(5,35,5) is more sensitive than MACD(12,26,9) and might be better suited for weekly charts.

What is red line and blue line in MACD?

The blue line is the MACD series proper, the difference between the 12-day and 26-day EMAs of the price. The red line is the average or signal series, a 9-day EMA of the MACD series. The bar graph shows the divergence series, the difference of those two lines.

Which MACD setting is best?

Which timeframe is best for Golden cross?

A golden cross can be used in different time frames. Day traders use lower time frames (5m, 10m, 15m, etc. ) and swing traders use higher time frames (6h, 12h, daily, etc.). Whenever you use the golden cross in higher time frames, it can indicate a major trend shift toward higher prices.

Which timeframe is best for MACD?

The periods used to calculate the MACD can be easily customized to fit any strategy, but traders will commonly rely on the default settings of 12- and 26-day periods. A positive MACD value, created when the short-term average is above the longer-term average, is used to signal increasing upward momentum.