A complete guide on "How to use MACD"
🧵
The thread will teach you.
🌟Building blocks of MACD
🌟How to interpret MACD signal
Bookmark the tweet for future reference
🐦retween to share
@bhatiamanu @kuttrapali26 @KommawarSwapnil

🟢The black dot is calculated by taking difference between 12ema and 26ema.
🟢9ema is applied on the blue line which results in the creation of an orange line which is also called the signal line
🟢Histogram is plotted by taking the difference between the blue and orange line
Using MACD line (blue color) for Trend identification
🟢If MACD line is above 0 - Primary trend +ve
🟢If MACD line is below 0 - Primary trend -ve
Identification of Trend-reversal
🟢when MACD line cross below zero line primary trend changes to -ve
🟢when MACD line cross above zero line primary trend changes to +ve
Identifying the starting point of corrections
🟢Histogram turning light red is starting of +ve correction (some time fall continues)
🟢Histogram turning light green is starting of -ve correction
🟢sometimes light red/green color will also indicate starting of consolidation
🟢When Histogram changes from light red into dark green it confirms +ve correction
🟢When Histogram changes from light green into dark red it confirms -ve correction
Did you learn something new?

More from All

You May Also Like

MDZS is laden with buddhist references. As a South Asian person, and history buff, it is so interesting to see how Buddhism, which originated from India, migrated, flourished & changed in the context of China. Here's some research (🙏🏼 @starkjeon for CN insight + citations)

1. LWJ’s sword Bichen ‘is likely an abbreviation for the term 躲避红尘 (duǒ bì hóng chén), which can be translated as such: 躲避: shunning or hiding away from 红尘 (worldly affairs; which is a buddhist teaching.) (
https://t.co/zF65W3roJe) (abbrev. TWX)

2. Sandu (三 毒), Jiang Cheng’s sword, refers to the three poisons (triviṣa) in Buddhism; desire (kāma-taṇhā), delusion (bhava-taṇhā) and hatred (vibhava-taṇhā).

These 3 poisons represent the roots of craving (tanha) and are the cause of Dukkha (suffering, pain) and thus result in rebirth.

Interesting that MXTX used this name for one of the characters who suffers, arguably, the worst of these three emotions.

3. The Qian kun purse “乾坤袋 (qián kūn dài) – can be called “Heaven and Earth” Pouch. In Buddhism, Maitreya (मैत्रेय) owns this to store items. It was believed that there was a mythical space inside the bag that could absorb the world.” (TWX)