While some 367 stocks saw bearish crossovers on BSE.MACD is one of the most effective momentum indicators that can be used to spot a change in the market’s short-term trend. A nine-day exponential moving average is used as a line to generate a buy or sell signal.To understand MACD, we should understand what a crossover is? Traders should look at other indicators such as RSI, Fibonacci series, candlestick patterns, Bollinger Bands and stochastic to confirm any trend.How to read the MACD chart? When there is a bearish crossover, the MACD value will be less than the value of the signal line.In the stock price of 3M India, the MACD value is -26.28 while the value of the signal line is -19.66. In the case of P&G Hygiene and Health , the MACD value is 61.38 while the value of the signal line is 65.33.

Source: Economic Times November 04, 2016 09:51 UTC