Trade Bitcoin Trading

MACD Bitcoin Indicator Oscillator Technical Bitcoin Trading Analysis FastLine & SignalLine

MACD Bitcoin indicator is used in different ways to give trading analysis information.

  1. MACD center line crosses indicate bullish or bearish markets: below zero is bearish, above zero is bullish.
  2. MACD Crossovers indicate a buy or sell bitcoin trade signal.
  3. Oscillations can be used to indicate oversold & overbought regions
  4. Used to look for divergence between bitcoin price & indicator.

Construction of MACD Crypto Indicator

The MACD cryptocurrency indicator is constructed using two exponential moving averages MAs and this indicator draws two lines. The two default exponential moving averages used are 12 & 26. Then a smoothing factor of 9 is also applied when drawing the MACD btcusd crypto indicator.

Summary of how MACD cryptocurrency indicator is drawn

MACD uses 2 EMAs + a smoothing factor (12, 26 Exponential Moving Averages and 9 smoothing periods)

MACD cryptocurrency indicator only plots two lines - the MACD fastline and the MACD signal line

MACD Lines - BTCUSD Crypto MACD Fast Line and MACD Signal Line BTCUSD Crypto Strategies

MACD Lines - MACD Fast-Line and MACD SignalLines Trading Signals

  • The FastLine is the difference between the 26 Exponential Moving Average and 12 EMA
  • The Signal-line is the 9 period moving average of the MACD fastline.

Implementation of MACD Crypto Indicator

MACD cryptocurrency indicator implements the MACD line as a continuous line while the signal line is implemented as a histogram. These two MACD LINES are then used to generate trade signals using the cross over trading method.

There is also the MACD center line which also is known as the zero mark & it is a neutral point between buyers and sellers trading the btcusd trading market.

Values above the center-mark are considered bullish bitcoin trading signals while those below are bearish bitcoin trade signals.

The MACD cryptocurrency indicator being an indicator, oscillates above and below this center-line.

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