MACD (12,27,9) Center Line cross

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MACD (12,27,9) Center Line cross

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Centerline crossovers – MACD above zero for a sustained period of time indicates an uptrend, and below zero, a downtrend. Potential buy signals occur when the MACD moves above zero, and potential sell signals when it crosses below zero.

MACD is a trend following and momentum indicator, calculated by subtracting a longer moving average (26 day EMA) from a shorter moving average (12 day EMA). MACD fluctuates above and below the zero line as the moving averages converge, cross and diverge. A 9-day EMA of the MACD Line is plotted with the indicator to act as a signal line and identify turns. Traders can look for signal line crossovers, centerline crossovers and divergences to generate signals. Potential buy signals occur when the MACD moves above zero (center line) or above the signal line, and potential sell signals when it crosses below zero or below the signal line.