The GOLDEN CROSS Of MACD Indicator
#MACD #MACDstrategy #MACDindicator
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👉 What is the MACD Indicator?
MACD, short for Moving Average Convergence/Divergence, is a trading indicator used in technical analysis, created by Gerald Appel in the late 1970s.
👉 What does the MACD indicator do?
Its function is to measure changes in the strength, direction, momentum and duration of a trend in a given asset. Almost no other indicator will give you so much information in one place.
This is one of the reasons why MACD is one of my favorite indicators.
👉 MACD multi time frames.
The multi time frame analysis is critical part of my trading process. I always make sure to check base my setup on at least 2 or maximum 3 time frame analysis. Market Cycles and divergences go hand in hand. We rely on divergences to spot the end of a wave or the whole cycle.
This is the key. If you know that there is a very good chance of the price reversing on the higher time frame or that the price still has room to go in the same direction of the current trend, you have an edge. Your edge is that you know the likely direction of the price in the upcoming period X.
This is where the fun begins as now you can focus on the entries (knowing in what direction you should be trading).
👉 MACD and price action
Indicators are great and some of them i really like and use on daily basis. However indicators are derived from pure price. That means, we should always pay attention to what the actual price action is telling us and if the price action agrees with the indicators.
For instance - you will find many situations where the indicator would show divergence, however there will be no evidence from the price that this divergence is tradeable. One way to check is using candlestick patterns. When looking to sell with a divergence, and you get nice bearish engulfing candle pattern for instance, would give you a good extra confirmation.
On the other hand, if the divergence is completed with a strong bullish candle (when looking to sell) that would be a controversial sign for this sell setup.
Strong support and resistance levels of any type (fibonacci zones, trend lines, psychological round level etc) are another type of price action confirmation that could be used for reliability when trading divergences.
👉 MACD golden cross
The "golden cross" of MACD as I like to call it, is basically a multi time frame cross of the 0 level at the same time. This rarely happens but it is a strong confirmation that the trend is shifting from one direction to the other.
👉 MACD + RSI
The two indicators made its way onto pretty much all platforms that you will find out there. Why? Because they do an amazing job in what they are supposed to do.
I personally use both of them on daily basis for my analysis and i can tell you first hand that they work! They work as long as you understand how to use them. Here are two tutorial videos on MACD and RSI:
✅ ✅ ✅ MACD TUTORIAL - • MACD Indicator - Trading Guide & Tutorial ...
✅ ✅ ✅ RSI TUTORIAL - • RSI Indicator - Trading Guide & Tutorial &...
Below are some videos related to the topic in place. I'm sure you will find them useful for your trading:
▶️ Watch the Powerful Matryoshka Trading Principle: • The Matryoshka Trading Principle - Free Fo...
▶️ 3 Steps MACD trading strategy - • 3 Steps MACD Trading Strategy For Forex Tr...
▶️ A really powerful MACD + RSI trading strategy - • MACD + RSI Powerful Forex Trading Strategy
▶️ A MUST watch divergence video - • How To Trade Divergence - KEY TRADING TIPS!
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