How to read the MACD indicator? Guidelines for using the MACD red and green bars

How to interpret the MACD indicator? The significance of MACD is quite similar to that of the double moving averages, but it is easier to read. When MACD shifts from negative to positive, it signals a buy. When MACD shifts from positive to negative, it signals a sell. When MACD changes at a large angle, it indicates that the gap between the fast moving average and the slow moving average is widening rapidly, representing a major market trend reversal.
The MACD indicator consists of the DIF line, DEA line, MACD histogram, and the zero line, collectively called the "three lines and one axis." The DIF line is the difference between the 12-day EMA( (Exponential Moving Average) and the 26-day EMA). The DEA line is the 9-day EMA of the DIF line.
Beginners in the crypto space are very familiar with trading volume and the red and green bars of candlesticks, but may not understand the red and green bars of the MACD. First, let's introduce the MACD indicator, which includes two lines, red and green bars( as shown in the figure below), along with a zero axis.
Guidelines for using the MACD red and green bars:
- After the price rises for a period, a new high appears on the 30-minute chart. The red bars indicate the release of bullish energy, suggesting that the market may soon enter consolidation or decline;
- After the price falls for a period, a new low appears on the 30-minute chart. The green bars indicate the release of bearish energy, suggesting that the market may soon enter consolidation or rise.