StockFetcher Forums · General Discussion · Why is crossing of MACD Zero Line Important?<< >>Post Follow-up
jbesr1230
28 posts
msg #35987
Ignore jbesr1230
5/12/2005 11:48:06 PM

Hello All,

I've been reading about MACD and most sources site crossing the zero line as an indicator of strength. I don't understand this. Why does crossing the zero line mean anything different than a crossover of the moving averages -- whether below zero or above zero?
Thanks



brokedown
21 posts
msg #35993
Ignore brokedown
5/13/2005 6:09:25 PM

MACD is a measure of trend. Increasing means stronger trend. Crossing above zero simple means a stronger trend. Moving averages can be used as a measure of trend also. Both are lagging.
All the MACD does is combine moving averages into one indicator for ease of sight.

Tom


StockFetcher Forums · General Discussion · Why is crossing of MACD Zero Line Important?<< >>Post Follow-up

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