Values of 14 and 20 are often used, but it is also possible to use other values. When period of time for calculations is longer, it gives more reliable signals. RSI line basically follows the price but often turns before the price. There are many other interpretations of this indicator. Two indicator lines oscillate between 0 and 100.
Red line is more sensitive one, while blue one gives confirmation.
Buy signal is generated when lines are below 20 level and breach 20 on their way up, while sell area is above 80. The MACD method can be applied to the stock market as a whole or to individual stocks. MACD makes use of three exponential moving averages-one short, one long, and one as a signal line, which is an exponential average of the difference between the two moving averages. Horizontal line is used as an equilibrium level. When the MCAD line is far from equilibrium line that means that public is reacting to the emotion of the trend.