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TA Challenge: How do you identify trends with moving averages?
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Meta Moo joined discussion · Mar 14, 2022 21:28

Technical Analysis Challenge Day 2 - MACD

Welcome back to this week's TA topic learning. Today we will learn how traders use the moving average convergence divergence (MACD) to extract valuable clues about the markets.
Technical Analysis Challenge Day 2 - MACD
What can you learn from the MACD challenge?
● Basic concepts of MACD
● Advantages & limitations of MACD
● Charting & application of MACD

Let's get started!

MACD triggers technical signals when it crosses above (to buy) or below (to sell) its signal line. It helps investors see whether the bullish or bearish movement in the price trend is strengthening or weakening.

1. We can see that the MACD peaks match the price trend peaks, and the MACD troughs also match the price trend troughs.
Technical Analysis Challenge Day 2 - MACD
2. When the MACD is above zero, the price moves higher in an uptrend. In contrast, when the MACD is below zero, the price falls in a downtrend.
Technical Analysis Challenge Day 2 - MACD
3. A buy signal is released when the DIF breaks through DEA from bottom to top. A sell signal is released when the DIF breaks through DEA from top to bottom.
Technical Analysis Challenge Day 2 - MACD
@Moomoo Courses also introduces the basic concepts of MACD. Please click here to learn more: What is the MACD?

Now, it's time to put them into practice. Let's follow some simple steps to draw the MACD lines on moomoo.

How to write your post?
Step 1: Select a specific stock
Step 2: Find the MACD indicator on moomoo
Step 3: Read the chart and analyze the price trends

For example:
I want to analyze $xxx with MACD, so I find it on moomoo.
Technical Analysis Challenge Day 2 - MACD
After learning, I sum up three key points. First, we should pay attention to the relationship between the DIF and the DEA lines. Second, the upward and downward columnar development in the middle is called the MACD column. Third, the central axis is generally above or below zero.
The MACD column turned slowly from red to green, while DIF and DEA crossed upwards. With this uptrend, I think it's time to buy.
Technical Analysis Challenge Day 2 - MACD
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.

Where to post?
Post your learning results by clicking on the discussion: Technical analysis challenge: How do you identify trends with moving averages?

Attention Please:
Mooers who complete all 4 tasks can compete for the $AMC Entertainment(AMC.US)$ stock rewards. Please look forward to the release of the remaining 2 tasks.
For more details, please click: Get to know MA indicators and post your learning results!
Disclaimer: Moomoo Inc. ("moomoo") provides mobile and online technology solutions for securities trading. Moomoo is not an investment adviser or a broker-dealer and it provides neither investment or financial advice nor securities trading services. All contents such as comments and links posted or shared by users of the community are opinions of the respective authors only and do not reflect the opinions, views, or positions of moomoo, its affiliates, or any employees of moomoo or its affiliates. Please consult a qualified investment or tax advisor for your personal financial planning and tax situations.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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