20. How to Trade the MACD Indicator Like a Pro Part 1
www.informedtrades.com A lesson on how to trade the Moving Average Convergence Divergence (MACD) in the stock, futures, and forex markets. The indicator, which was developed by Gerald Appel, is constructed by taking a 12 period exponential moving average of a financial instrument and subtracting its 26 period exponential moving average. The resulting line is then plotted below the price chart and fluctuates above and below a center line which is placed at value zero. A 9 period EMA of the MACD line is normally plotted along with the MACD line and used as a signal of potential trading opportunities in the stock, futures and forex markets. When the MACD line is above zero this tells the trader that the 12 period exponential moving average is trading above the 26 period exponential moving averages. When the MACD line is below zero this tells the trader that the 12 period exponential moving average is below the 26 period exponential moving average. Traders will watch the MACD line as when it is above zero and rising this is a sign that the positive gap between the 12 and 26 EMA’s is widening, a sign of increasing bullish momentum in the financial instrument they are analyzing. Conversely when the MACD line is below zero and falling this represents a widening in the negative gap between the 12 and 26 day EMA’s, a sign of increasing bearish momentum in the financial instrument they are analyzing. The purpose of the 9 period exponential moving average line is to further confirm …
Tagged with: Indicator • Like • MACD • Part • Trade
Filed under: Forex Articles
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@OilTradingAcademy you scientist??!!!! ok. if you scientist why you selling your fish? or you are not a trader just scammer??hahahaha
The video says that when the MACD crosses above or below the signal line it indicates a bullish or bearish trend. This seems counter-intuitive to me. If the signal line represents an exponential moving average with a shorter period than the MACD, and the signal is above the MACD, it seems to me that would indicate short-term performance is better than performance averaged over a longer period, which sounds bullish. What am I missing?
What if I could show you a secret about trading Oil that is essentially a cheat sheet for trading it? What if by using this cheat sheet you could achieve up to a 90% accuracy on your trades? Do you realize how much money you make trading Oil relative to how much it costs to trade it? I’m a scientist and discovered the “code” for trading Oil 4 years ago, it’s controlled by a computer and not by “buying” and “selling”, now I’ll show you this “code”. Google my website “Oil Trading Academy”.
How would you like to day trade with your own personal “cheat sheet”? How you ask? Easy, I got a real secret for you, the entire Oil market doesn’t trade, instead it’s controlled by a computer, and I know the “code” of this computer. It’s very easy and simple, and once you know the “code” for the Oil market you’ll know when exactly to take your entries with up to a 90% accuracy rate, allowing you to make a lot of money very easily. Google my website “Oil Trading Academy” or visit my profile.
this method seems almost too good to be true, it predicts movement so effectively
Your videos are by far the best, thanks so much!
on a serious note, has anyone heard of these people on twitter that constantly update throughout the market hours? I found a sick guy by the name of StockLogik who is always on point twitter/stocklogik does anyone else have any other reliable people like this? I am only looking for the reliable ones who constantly update and have good picks, thanks!
check my channel for video’s about daytrading and trade like me in forex (EUR/USD, CAD/JPY etc.), stocks (coca-cola, phillips etc.), commodities (gold, silver, oil etc.) and indices (Nasdaq, Nikkei etc.
HEY MAN, TKS FOR THE LESSON. I HAD SOME DOUBT that have been resolved. I WILL , NOW , SEE PART II
check my channel for video’s about daytrading and trade like me in forex (EUR/USD, CAD/JPY etc.), stocks (coca-cola, phillips etc.), commodities (gold, silver, oil etc.) and indices (Nasdaq, Nikkei etc.)
Well made video, but I believe there are better indicators and methods to use in trading. It’s just my opinion, I could be wrong.
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stay away from forex it is the biggest scam business in the world. the 5% winners are the market seller in agreements with brokers. stay way from this devil business. go to another markets
Great! thanks
Thanks for sharing this.
it would be called a “brokerage”. I do it myself online. a broker is a person who does the buying and selling FOR you
So you dun trade with broker? u opened ur own bank to trade? haha
lol you doesn’t seems to understand what im talking about huh? broker? my trading account? make sense to you?
haha, you have a broker. that tells us everything
why should i feel jealous when people like you contribute to my paycheck issued by my broker at the end of every month?
@NoShame86 jealous, much?
@RudyMvp Damn, pretty solid results.
I love MACD Bearish and Bullish Divergence trades,,also the “HIDDEN MACD divergence signals.
I don’t trade stocks or Forex, I’m a commodity futures guy. I just trade MACD Divergence and breakouts of 1 month or longer sideways trading ranges,,nothing fancy.
2009 Results:
Total trades 104
62 winners
31 losers
11 breakeven
Winning trades = 165k in profits
Losing trades = 35k in losses
Total Profit = 130k
Starting account balance 20k
NO pyramiding, 1 contract trading ONLY.
The best stock program in YouTube!
bullshit, to get that kind of returns you will have to over leveraged yourself, that means you won’t get lucky for long. good luck retard