The MACD is an unbounded oscillator, which means the rank can keep moving in a direction for as long as a trend lasts. ... MACD stands for Moving Average Convergence Divergence. This means that essentially the indicator measures the difference between moving averages.

What is an unbound indicator?

This indicator simply measures the percentage change in price. The primary purpose of this indicator is to identify the extremes of a trend by identifying when a stock is overbought or oversold. The ROC is an indicator that is suited to stocks that are already in an uptrend.

Which MACD positive crossover is a strong bullish signal?

MACD crossing above zero is considered bullish, while crossing below zero is bearish. Secondly, when MACD turns up from below zero it is considered bullish. When it turns down from above zero it is considered bearish.