EMA 50 periods and the MACD zero line... close friends

March 13th, 2012, 12:35 PM

Ever noticed the close relationship between the MACD Zero Line and the EMA 50 ?

When price crosses the EMA 50, the MACD is kissing or crossing the Zero Line. Nothing new but interesting to note.

March 13th, 2012, 01:08 PM

@trendisyourfriend

The MACD = EMA 12 - EMA 26. The MACD crossing the zero line represents the EMA 12 crossing the EMA 26.

Put Line on Close, EMA 12, EMA 26 and EMA 50 and the MACD on a chart and look at the relationship.

Some traders will use multiple indicators to "confirm" a movement without realizing that both indicators are essentially the same thing.

See the attached chart.

March 13th, 2012, 01:45 PM

Yea! makes sense. So price crossing or kissing the EMA 50 while at the MACD Zero Line is in the realm of illusions

March 13th, 2012, 02:58 PM

trendisyourfriend

Yea! makes sense. So price crossing or kissing the EMA 50 while at the MACD Zero Line is in the realm of illusions

They are both momentum indicators, add another momentum indicator

With a 50 Period CCI added

EMA 50 periods and the MACD zero line... close friends

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EMA 50 periods and the MACD zero line... close friends