2022 MACD Indicator Trading strategy for Stocks Crypto Forex High Win Rate for beginners

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MACD – simple trading strategies

Welcome to the channel.
Today we will talk about a very simple yet powerful trading indicator called MACD .
This video will serve as the fundamentals with another video serving as an advanced series.

The moving average convergence divergence also known as MACD is one of the most popular indictors used by traders because it is very reliable.

M- moving
A-average
C- convergence
D- divergence

The MACD is a momentum indicator and a trend following indicator because it turns two EMA’s (exponential moving averages) into a momentum oscillator.

To oscillate is to move between two points, so the MACD shows when a new trend begins and an old one ends. It also shows the strength of the upside or downside momentum.

Applying it to your chart

Every trading platform will have a MACD indicator built in.
To use it, just go to indicators and apply it to your chart.

In this case, we click on indicators and search for MACD , and click it to apply.

Components

To better use the MACD you need to briefly understand its components.

The MACD has 4 components, namely:

The MACD line, signal line, Histogram and Zero line.

You don’t need to know how to manually calculate any of the MACD components, your trading platform will automatically do it for you. However, we will briefly touch on calculation so you get a better understanding of it

MACD and Signal line
The default MACD line is calculated by subtracting the 26 EMA from the 9 EMA. This line is fast to react to price changes.

The signal line is a 9 period EMA of the MACD line. This line is smooth and less reactive.

Note that each EMA represents a unit of time in either 1 minute, mins ,1 hour, 1 day etc. So, depending on the time frame you are using, a 26EMA can represent 26 DAYs, or 26 Hours.

Exponential Moving Averages (EMA) are used because they take account of most recent price changes i.e. they put more weight on recent prices. However, an SMA (simple moving average) will place equal weight on all prices.

When the MACD line crosses the signal line, that is a trading signal.
When the MACD line crosses the signal line upwards, it s a bullish signal to go long and when it crosses down, its time to close a long position by selling.

When the MACD line crosses the signal line downwards, it’s a bearish signal to go short. When it subsequently crosses upwards, it’s a signal to cover a short position by buying.

This is the basic trading principle of the MACD

MACD Histogram and Zero line.

The MACD histogram plots the relationships between the zero line, MACD line and the signal line.

When the MACD line crosses upwards on the signal line, it creates a positive value, so you see the green bars on the histogram. The bigger the bars, the bigger the upside or bullish momentum. As the length of the bars starts to lessen, it shows momentum slowing down.

When the MACD line crosses downwards on the signal line, It creates a negative value on the histogram, resulting in red bars. The size of the bars signifies the momentum to the downside. As they reduce in size, it means the selling pressure is slowing down.

The gap between the MACD line and Signal line would dictate if they are converging or diverging. As the gap gets bigger, they diverge and the bars get bigger. AS the gap get smaller, the bars get smaller and they converge. This graphically displays the momentum.

Why not use the 26 and 12 EMA on its own?
Using just 26/12 EMA will lead to delayed entry and exit signals. So, you will leave a lot of money on the table.

Adding the 9 EMA will also make it unnecessary complex, waiting the 3 lines to cross simultaneously.

Basic Strategy 1

The basic MACD strategy is to go long when the MACD line crosses upwards on the signal line. You can use your risk management strategies to determine when to sell your long position and book your profits.

You also go short when it crosses downwards on the signal line. Again, you use your risk management strategy to determine when to cover your short position and book profits.

Basic strategy 2

Determine the long-term trend of the market and only take the trades in that direction.

In this case you can add the 100 EMA to your chart. If sloping upwards, it’s a bullish long-term trend if price above 100 EMA. If sloping downwards and price is below the 100 EMA then it’s a bearish trend.

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day train, swing trading, scalping, strategies, indicators, crossover, histogram, signal line, MACD line, zero line, high win

DISCLAIMER: I am not a financial adviser . These videos are for educational and entertainment purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.

When the MACD Crosses the Zero Line, 2022 MACD Indicator Trading strategy for Stocks Crypto Forex High Win Rate for beginners.

How To Pick The Appropriate Trading Software

Thankfully for us, we are robotics and we can run our trades with no diversions. They typically react by putting things off – and never deciding. In some cases the difference can be as high as 75%.

2022 MACD Indicator Trading strategy for Stocks Crypto Forex High Win Rate for beginners, Find latest replays about When the MACD Crosses the Zero Line.

Trading Without Signs – What’s The Trick?

These indications will maintain you in a pattern as long as the trend stays intact. Moving Typical Convergence Divergence (MACD) – MACD is a pattern following momentum sign. How do you know which ones are the very best?

In this article, we will look at swing trading, this technique of trading is simple to understand and can be found out rapidly. If you desire to make huge profits in around 30 minutes a day then currency swing trading can help you do simply that – Let’s take an appearance at it in more detail.

A Macd Trading divergence on an amount of time 5 times higher than your time frame is difficult to get rid of and it can seem like a fight attempting to trade against it.

Prudent investors always have an exit strategy prior to they Macd Trading signals get in a trade. Whether it’s a sell stop or modification technique, it should currently be thought of before the trade starts.

Trade with the Trend. It is most conservative to trade with the pattern. Attempting to forecast the bottom is more like gambling than trading. You need to absolutely go just half stake if there is other evidence suggesting that a trend is reversing that you just can’t disregard.

Look at some momentum signs to see if rate velocity has moved to far to rapidly, to make the currency overbought. Momentum indicators are simple to find out and will inform you, if the market is overbought in visual kind. There are numerous you can utilize however, the very best ones in my view are – the RSI Stochastic and Macd Trading Crossover. Which ever ones you choose, don’t utilize to lots of, a couple suffices.

Because they get in too early, many traders lose. Because they believe that they have actually discovered a good turnaround signal, they want to strike the top and bottom of the trends and so they go versus the forming and continuous trend. the pattern has been choosing such a long time and it is time to reverse and. feelings like this.

What you need to expect to learn from the forex course is to specify it as the perfect currency trading. Besides that, you can also discover how to execute the Pivot system used by flooring traders. The forex market is so dynamic and hectic, that often you only have a couple of seconds to decide. Therefore, you would be taught to learn how to evaluate cost actions through effective filters.

SURPRISE SECRETS: An extra advantage for traders technically is when there is no major news impacting the market. You will constantly see a clear pattern for the day. Make sure you understand when the news is going to be launched so that you can place yourself when trading utilizing technical indications. i.e. close your trade 10 to 15 minutes before the (FA) news. Then 15 minutes after the (FA) news, you could trade.

That expert will not be the one to place the trade for you. Think me, there are some who have the experience to do that. 99.99% chance that you’re not one of them. This means that we do not look for both long and short trades.

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