How to use macd indicator in daily trade

Feb 13, 2022

Preface
Macd indicator use to help them to make trading decisions postional trade. Every trader most of the use macd indicator .Because trader favourite indicator and what is your favourite indicator ? Write it in the comment.
Speciality of Macd indicator?

Macd Negative area(zone,cross)
see nifty 50 chart this date 21 jan 2022 macd move down side negative(zone,area)


Macd Postive area(zone,cross)
see nifty 50 chart this date 27 dec 2021 macd move up side postive(zone,area)


Alright, the operation start after creating an high 18604.45 date 19 oct 2021. Macd indicator indicate negative cross 22 oct 2021 and price consolidation three four candle and next candle breakdown. Most of the case macd indicator indicate price direction .This reason most of the people use this indicator .

Case Price move up direction 29 oct 2021 to 15 Nov 2021 this case Macd indicator negative zone move up side and again reverse down side 16 nov 2021 and price go down 18150 to 16855

Feb 13, 2022

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Negative zone macd indicator
see chart Hdfc Amc

Feb 13, 2022

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Postive zone(area) Macd indicator
see this chart -- Gujart gas

Feb 13, 2022

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The concept behind the MACD is fairly straightforward. Essentially, it calculates the difference between an instrument's 26-day and 12-day exponential moving averages (EMA).2 Of the two moving averages that make up the MACD, the 12-day EMA is the faster one, while the 26-day is slower.

In the calculation of their values, both moving averages use the closing prices of whatever period is measured. On the MACD chart, a nine-day EMA of the MACD itself is plotted as well, and it acts as a trigger for buy and sell decisions. The MACD generates a bullish signal when it moves above its own nine-day EMA, and it sends a sell sign when it moves below its nine-day EMA.

The MACD histogram is an elegant visual representation of the difference between the MACD and its nine-day EMA. The histogram is positive when the MACD is above its nine-day EMA and negative when the MACD is below its nine-day EMA. If prices are rising, the histogram grows larger as the speed of the price movement accelerates, and contracts as price movement decelerates. The same principle works in reverse as prices are falling.

The chart below is a good example of a MACD histogram in action:

Feb 13, 2022

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Feb 13, 2022

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price down negative zone
see this chart - Amaraja battery

Feb 13, 2022

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postive cross over Gabriel india chart