What does macd cross deviation mean?

MACD cross-deviation pattern refers to the continuous cross trend of MACD technical indicators to observe whether it deviates from the stock price. If the stock price is in a continuous upward trend and the continuous intersection of MACD is lower than 1, the intersection shows a gradual downward trend and moves in the opposite direction to the stock price trend.

This deviation from the technical form means that the bullish power of the market is one after another, and the subsequent stock price may reverse downward with great probability. This form belongs to the MACD cross top deviation technical form, which is a peak reversal trend signal.

MACD, called Similarities and Differences Moving Average, is developed from Double Exponential Moving Average. Subtract the fast exponential moving average (EMA 12) from the slow exponential moving average (EMA26) to get the express DIF, and then use 2× (the 9-day weighted moving average DEA of the express DIF-DIF) to get the MACD column. The meaning of MACD is basically the same as that of double moving averages, that is, the dispersion and aggregation of fast and slow moving averages represent the current long and short state and possible development trend of stock prices, but it is easier to read. The change of MACD represents the change of market trend, and MACD of different K-line levels represents the trading trend in the current level cycle.

When applying MACD, the fast moving average (generally 12 days) and the slow moving average (generally 26 days) should be calculated first. These two values are used as the basis to measure the "difference" between the two (fast and slow lines).

The so-called "DIF" is the average value of 12 minus the average value of 26. Therefore, in the continuous upward trend, the average of 12 is above the average of 26. At the same time, the positive deviation (+DIF) will become larger and larger. On the contrary, in the downward trend, the deviation value may become negative (-DIF), and the absolute value becomes larger and larger.

As for the market turning point, the positive and negative deviation should be reduced to a certain extent, which is the real signal of market reversal. The inversion signal of MACD is defined as the 9-day moving average (9-day DIF) of the "deviation value".

Basic usage:

1.MACD golden fork: DIF breaks through DEA from bottom to top, which is a buy signal.

2.MACD dead fork: DIF breaks through DEA from top to bottom, which is a selling signal.

3.MACD green turns red: MACD value turns from negative to positive, and the market turns from short to long.

4.MACD turns from red to green: MACD value turns from positive to negative, and the market turns from long to short.

5.DIFF and DEA are both positive values, that is, when both are above the zero axis, the megatrend belongs to a bull market, and DIFF breaks through DEA upwards, which can be used as a buying signal.

6.DIFF and DEA are both negative numbers, that is, when both are below the zero axis, the general trend is short market, and DIFF falls below DEA downward, which can be used as a selling signal.

7. When the trend of DEA line deviates from the trend of K line, it is a reverse signal.

8.DEA has a high error rate in consolidating the situation, but if it cooperates with RSI and KDJ indicators, it can make up for the deficiency appropriately.