We are looking at ICON (ICX) a very promising Korean project.
When the enters the oversold regions (<30), this indicates a good time to buy. Conversely when the enters the overbought region (>70), this indicates a good time to sell (or hold if you are keeping it as a long term investment).
This can be used with the MACD:
The blue line on the is the short term ( ), which shows the average price over the previous 12 days, however, it gives more weight to recent data. This means it is better at showing recent momentum changes.
The orange line is the ( ) over a 26-day time period (add all the close prices for the previous 26 days and divide by the number of data points = 26).
So when the enters an overbought region and the changes angle to a positive slope, this is a good indication to buy. You could wait for confirmation using candles from the next 2 sessions or wait for the to cross the , calleed the "Golden Cross" when crossing upwards. Conversely when the enters an overbought region, and the changes from an upwards slope to a downwards slope, this is an indication to sell. Again you could wait for confirmation from candles or from the crossing the downwards, known as the "Death cross".