Blue Line refers to when entry signals can 1st be seen on the charts.
The Stochastic and MACD are Price lagging indicators
The Stochastic and MACD are Price lagging indicators
...except when they lead...
Like most indicators, they usually lag because they are calculations:
created with mathematical formulas that are based on what has already happened with Prices.
STO - Stochastic is generally described as an Oscillator - a line (or pair of lines)
that range between two extremes, i.e. 80 and 20 or Overbought and Oversold.
MACD - Moving Average Convergence/Divergence is thought to be an indication of the current price trend.
IMO the MACD is a combination of both - it's histogram oscillates within ranges and it's EMAs describe the price trend.
While both components range above and below a zero line, the actual numeral values are not that important.
To paraphrase Andre Agassi "interpretation is everything"
Three indicator divergence (3xD)
Two indicator divergence (2xD)
