MACD, this widely used Technical Analysis indicator, actually has some lesser-known characteristics that are worth exploring in depth. Let's set aside conventional understanding and re-examine this indicator known as "Exponential Smoothing Moving Average Convergence / Divergence."

First of all, we need to recognize that the MACD is essentially still a moving average. It cleverly shifts the moving average from the main chart to the sub-chart, and this transformation can be seen as an innovation in data presentation.

If we reproject the MACD from the sub-chart to the main chart, we will find some interesting phenomena. Taking the weekly chart of Dongshan Precision as an example, we can clearly see the two core rules of the MACD:

Golden Cross and Death Cross Rules: When the white line (DIFF) of the MACD crosses above the yellow line (DEA) forming a Golden Cross, it actually corresponds to the price crossing above a certain moving average line in the main chart. Conversely, a Death Cross means the price crosses below that moving average.

Zero Axis Rule: When the DIFF line is above the zero axis, it indicates that the price is running above a certain MA; when the DIFF line is below the zero axis, it means that the price is running below that MA. When the DIFF line crosses the zero axis, it is equivalent to the price crossing this key MA.

This method of reinterpreting the MACD allows us to better understand the relationship between price and the moving averages, thereby better grasping market trends.

In addition, the divergence phenomenon of MACD is also worth our attention. Divergence is often seen as a potential trend reversal signal, but specific applications still need to be analyzed in conjunction with other factors.

Overall, by restoring the MACD to the main chart, we can better understand the essence of this indicator, allowing us to use it more effectively in actual trading. However, it is important to note that no technical indicator is infallible; we should use it as an auxiliary tool for decision-making rather than the sole basis. In practice, combining multiple analysis methods and maintaining rational thinking is the key to success.