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which can function as a trigger for buy and sell signals. Traders may buy the security when the MACD crosses above its signal line and sell or short the security when the MACD crosses below the signal line.
A reading of 80+ points to a security being overbought, and is a sell signal. Readings 20 or lower are considered oversold and indicate a buy. What Is a Stochastic Stock Chart? Technical traders can add the stochastic oscillator on top of a security's price chart, which often appears in...