Learning

Components of MACD: Fast line DIF, Slow line DEA, Zero axis, MACD bars
Function One: Determine Trend
When both the DIF line and DEA line are above the zero axis, it indicates that the market is in a bullish trend;
If below the zero axis, it indicates a bearish trend.
Function Two: Determine Buy and Sell Timing
When the DIF line crosses above the DEA line to form a golden cross, it's a buy signal;
When the DIF line crosses below the DEA line to form a death cross, it's a sell signal.

Function Three: Identify Divergence
Bearish Divergence: The price is in an uptrend, but the MACD indicator is falling, indicating that the price may reverse downwards;
Bullish Divergence: The price is in a downtrend, but the MACD indicator is rising, indicating that the price is about to reverse upwards.