MACD Strategy

• MACD Fast Line & Signal Line
• MACD Buy & Sell Signals
• MACD Whipsaws Fake Out Signals
• Generating Center Line Crossover Signals
• MACD Classic Bullish and Bearish Divergence
• MACD Hidden Bullish and Bearish Divergence
• MACD Summary

MACD Center Line Crossover

The MACD cryptocurrency indicator is one of the most widely & oftenly used indicators available. MACD technical indicator is a momentum oscillator with some bitcoin trend following characteristics.

MACD is one of the most popular indicators used in cryptocurrency technical analysis. MACD indicator is used to generate cryptocurrency signals using cross overs.

MACD plots the divergence and convergence of moving averages. MACD indicator is constructed using moving average analysis. Moving Average Convergence/Divergence is a trend-following cryptocurrency indicator. MACD indicator shows the correlation between two moving averages.

One moving average is of a shorter period & the other for a longer period of bitcoin price bars.

MACD Indicator - MACD Technical Indicator Analysis

MACD cryptocurrency indicator has a zero center-line: values above zero line are bullish while those below zero are bearish.

In an upwards bitcoin trend the shorter MACD line rises faster that the longer MACD line this creates a gap. In addition as long as the MACD indicator is above the center-mark the bitcoin trend is still bullish as illustrated below.

Do not sell as long as the MACD Bitcoin Indicator is above the Center Mark - this is bullish territory and it does not matter how it is moving as long as it is above the zero center mark, as shown on the cryptocurrency example illustrated below.

MACD Indicator Above Zero Mark - Bullish Signal

In a downwards bitcoin trend the shorter MACD line falls faster than the longer MACD line this creates a gap. In addition as long as the indicator is below the center-mark the bitcoin trend is still bearish as illustrated below.

Do not buy as long as the MACD Bitcoin Indicator is below the Center Mark - this is bearish territory and it does not matter how it is moving as long as it is below the zero center mark, as shown on the cryptocurrency example illustrated below.

MACD Bitcoin Indicator Below Zero Center Line Mark - Bearish Trading Signal

When the bitcoin trend is about to reverse the MACD lines begin to move closer to each other, thus closing the gap.