Introduction

• The strategy we will be implementing today is MACD( Moving Average Convergence/Divergence)
• The MACD indicator is a momentum-based indicator that is part of the Oscillator family for technical analysis.
• MACD the technical indicators developed by Gerald Appel in the late 1970s
• All momentum indicators help traders find buy and sell signals
• Moving Average Convergence-Divergence is a trend-following momentum indicator that shows the relationship between two price moving averages.

The indicator has four main functions,

• Crossover signals
• Bullish/bearish divergence
• Overbought & oversold
• Center line intersection

MACD (Moving Average Convergence/Divergence) Positive Crossover

• MACD Positive crossover is a bullish crossover
• A buy signal is triggered when MACD fall below zero. An uptrend is confirmed when the MACD moving average  breaks below the zero line
• Let’s look at an example in the chart below  ( on TVS motor a daily time frame)

A buy signal is triggered when MACD fall below zero. An uptrend is confirmed when the MACD moving average breaks below the zero line, let’s look at a few opportunities in the LIVE market

MACD (Moving Average Convergence/Divergence) Negative Crossover

• MACD Negative crossover is a bearish crossover
• A sell signal is triggered when the safe one crosses the zero line. A bearish trend is confirmed when the MACD moving average line is above the zero line
• Let’s look at an example in the chart below ( on IDBI a daily time frame)

A sell signal is triggered when the safe one crosses the zero line. A bearish trend is confirmed when the MACD moving average line is above the zero line let’s look at a few opportunities in the LIVE market

Awesome, but what’s my takeaway?

• Abbottindia, Adani Green, Adani Trans, TVS motor & India Mart  have given a buy call on a daily time frame (implementing MACD Positive crossover )
• IDBI, TRIDENT, PAGEIND, SBILIFE & IRCTC have given a sell call on a daily time frame (implementing KST(MACD  Negative Crossover)