Weekly signals can be used as filters on daily signals. Daily signals can be used as filters for intra-day charts. Know the Warning Signs Trade MACD . A buy signal occurs when the faster line crosses above the slower and both lines are below zero. A sell signal takes place when the faster line crosses below the slower from above the zero line.
Weekly signals take precedence over daily signals.
An MACD histogram plots the difference between the two lines and gives even earlier warnings of trend changes. It measures the degree of trend or direction in the market. A rising ADX line suggests the presence of a strong trend. A falling ADX line suggests the presence of a trading market and the absence of a trend. By plotting the direction of the ADX line, the trader is able to determine which trading style and which set of indicators are most suitable for the current market environment.