MACD zero line must be viewed in conjunction with the candlestick chart structure


Note: (Due to personal habit of setting the colors for rise and fall, here it refers to green for rise and red for fall)
1. Uptrend + Candlestick retracement to zero line
In an upward trend, as candlesticks retrace and adjust, the MACD white line gradually falls and approaches the zero line.
If the trend on the chart is not broken, and the lows are higher, it is a bullish shakeout gathering strength.
A golden cross near the zero line again, with the green histogram expanding and candlesticks stabilizing, indicates a retracement to the zero line in an uptrend, with a very high probability of continuing upward. The zero line is the boundary between bullish strength and weakness; holding above it without breaking means the trend is intact.
2. Downtrend + Candlestick rebound to zero line
In a declining market, weakly rebounding candlesticks, with the MACD slowly moving upward and approaching the zero line.
The highs on the chart are getting lower, and the moving averages are in a bearish alignment; reaching the zero line represents a strong resistance level.
As the MACD approaches the zero line and shows a death cross with the red histogram appearing, and candlesticks encountering resistance and falling back, it signals another decline, with a very high probability of shorting. Do not attempt to catch the bottom.
Candlesticks determine the direction, MACD zero line indicates strength or weakness.
Above the zero line, retracing to the zero line = strong low buy
Below the zero line, rebound touching the zero line = weak shorting
Understand the chart structure clearly and only trade with the trend, not against it.
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