Comment on Indicators (Part 2)

AK commented on 30 Sep 2016, 10:26 PM

I think the MACD/signal line confusion still remains (30/09/2016). “The sentiment is bullish when the 9 day SMA crosses over the MACD Line wherein the 9 day SMA is greater than the MACD line. When this happens, the trader should look at buying opportunities” . This is in fact a bearish sentiment. Please clarify.

While changing the above, could you avoid using crosses over in both bullish and bearish scenarios? It creates confusion in newbies like me. Crosses over can be used in bullish sentiment whereas crosses under can be used in bearish sentiment. Or simply could you say that ” When the MACD line (generally black) goes above the signal line, then it indicates a bullish sentiment” or something like that. Thanks.

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