The DAT (Divergence and Trend) MACD Indicator is a technical analysis tool that combines the MACD indicator with the trend detection capabilities of the DAT oscillator.
The DAT MACD is used to identify divergences between price and the MACD line, which can signal potential trend reversals or confirm existing trends. The DAT MACD is displayed as a histogram with an upward or downward slope, showing positive or negative momentum.
The MACD line is calculated as the difference between a short-term EMA and a long-term EMA, and a signal line is created by calculating a 9-period EMA of the MACD line. When the MACD line crosses above the signal line, it is a bullish signal, and when it crosses below the signal line, it is a bearish signal.
The DAT oscillator is a momentum indicator that helps determine trend direction by measuring the difference between the current price and a moving average of the price. When the DAT oscillator is above zero, it indicates an uptrend, and when it is below zero, it indicates a downtrend.
This Indicator provides a comprehensive approach to analyzing price trends and momentum, making it a valuable tool for traders in their decision-making process.
Buy Signal Generation With DAT MACD Indicator
When the MACD line passes above the signal line and the DAT oscillator is above zero, the DAT MACD Indicator generates a buy signal.
The MACD line represents the difference between a short-term and a long-term moving average, while the signal line is a 9-period moving average of the MACD line.
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Sell Signal Generation With DAT MACD Indicator
A sell signal is generated with the DAT MACD Indicator when the MACD line crosses below the signal line and the DAT oscillator is negative.
The MACD line shows the difference between a short-term and a long-term average of the price, while the signal line is calculated by a 9-period average of the MACD line.