MACD Indicator - Trading Guide & Tutorial AND Free Trading Strategy - By Vladimir Ribakov

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Hi traders,

Vladimir Ribakov here, from Traders Academy Club - http://b.link/wr-tac

This video is a full trading guide for my favorite indicator - the MACD

💱Why is the MACD considered to be one of The Most Reliable and Most Versatile Technical Indicators💱

What is MACD indicator?

Moving Average Convergence Divergence, renowned as MACD is a trading indicator, which most traders find to be one of the simplest and effective indicators available. Developed by Gerard Appel in the late 1970s, the MACD basically turns two trends following indicators into a momentum oscillator by subtracting the longer moving average from the shorter one. As a result, the MACD offers the best of both worlds: trend following and momentum.
Almost, no other indicator can provide a great deal of information similarly to the MACD.

The formula for the MACD is -

MACD Line: (12-day EMA - 26-day EMA)

The MACD line is the 12-day Exponential Moving Average (EMA) less the 26-day EMA. Closing prices are used for these moving averages. A 9-day EMA of the MACD line is plotted with the indicator to act as a signal line and identify turns. The MACD Histogram represents the difference between MACD and its 9-day EMA, the signal line. The histogram is positive when the MACD line is above its signal line and negative when the MACD line is below its signal line.
Traders to use the histogram to identify when bullish or bearish momentum is increasing or decreasing.

👇 Get my sRs Trend Rider - which is based on MAs, RSI and Momentum
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❌ What Not to do with the MACD:

Most traders changed the number trying to figure what will work and in my opinion, what was good for the developer, is also good for me. It is important to understand the logic of how the MACD works.

Most common mistake, mainly by new traders is following the rule to enter long on a trade when the indicator is showing green and enter short on a trade when the histogram is red. Practicing this will let you lose trades majority of the time. This indicator is unlike the Stochastic and RSI which performs best on the extreme trending conditions.

▶️ Watch the videos below to understand the logic behind my explanation:
RSI Indicator: Tutorial and Guide
https://youtu.be/iMUbhhF7VGE

How to trade successfully with the Stochastic Indicator:
https://youtu.be/iMUbhhF7VGE

One of the reasons why MACD is my favorite indicator:

It is impossible in to measure volume in Forex. So the MACD comes with the approach of it being reliable on moving average. The first line is the distance of moving average 12 and 26. The second line is the 9 moving average. The MACD represent the best way to measure the increasing and decreasing of the momentum on the chart.

Download the MACD indicator I use for meta-trader4 (mt4) -

https://bit.ly/2UzPQHE

My personal favorite strategy is to use MACD Divergence.

Divergence is a situation that tells you one thing and the indicator tells you the opposite. In an uptrend, you will have higher highs on the charts and on the indicator, you will have lower highs. In a downtrend, you will have lower lows on the charts and higher lows on the indicator.
The indicator helps you to visualize better and is much easier at reading the charts but should not be solely dependent on.
Traders use divergence to assess the underlying momentum in the price of an asset, and for assessing the likelihood of a price reversal

To learn how to apply this killer recipe to your charts, sign up below to become a member of the Divergence University:

http://b.link/checkdu

The Key in using the MACD correctly: My point of view

By scanning multi timeframes - Start with the highest timeframe, then check the lower timeframes to ensure that there are both corrections and MACD crossing from positive to negative. Apply the rest of your technical analysis knowledge here and you will be able to catch real trends:

▶️Click the link below to watch the Powerful Matryoshka Trading Principle:
https://youtu.be/WUCSHDVjdJ0

To be eligible to enter the free giveaway of a Free 2 months membership to my club @Traders Academy Club, please comment below. Whether it is a question, suggestions or comment on how you apply the MACD to your charts, I would like to hear about it.

Thank you as always for watching my video. If you enjoyed it please hit the like button and let me know which indicator you would like for me to do next. You can also share with your family and friends to increase their knowledge as well.

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#macd #trade #technicalanalysis #divergence

Yours to your success,

Vladimir Ribakov
http://b.link/wr-tac

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