just my summary notes. :) blue line = MACD = 26 period moving average - 12 period moving average. green line = 9 day moving average of MACD histogram = vertical difference between MACD and 9 day moving average. when histogram is positive = buy signal, negative histogram= sell signal.
I've been backtesting MACD recently and on the daily it seems particularly reliable. Certainly not catching bottoms and tops but for an amateur to take every buy and sell signal the probability of winning over time is very good.
"how it might" - such sound advice. No over promising and over estimating. Also very refreshing to hear about tactics you don't normally consider either.
MACD is amazing. It’s my favorite tool in addition to the Bollingers. I never lose with those tools. Plus I’m not greedy. I guess it’s also good for me because I’m really a scalper.
Hey Winston, I know you posted this comment 3 months ago, but I'm a new trader and I'd like to get some advice on scalping. I've only been using the RSI and and 5-day SMA. I've had some success, but other times I've lost big. How do you use your indicators?
@@aron7973 If you are "losing big", may I suggest the issue is not this indicator or that indicator. Look to your emotions, i.e. not taking stops, over trading, over sizing, etc. -best trading, -hg
Hi - when you change to a 5 day chart, is the time interval flipping to e.g. hourly or 30 minute? This would change the MACD signals if you were previously looking at a daily interval chart.
Had to watch the video twice, but I got it the second time. The downward cross indicates a sell signal and the upward cross a buy signal. For a noob like me, this was a very easy to understand video. Will look through some of your older (and newer) videos. Now a subscriber. Keep up the good work!
Thank you, to me it was one of the best videos about MACD. I love Davids' videos by the way. Could you do one on "using MACD with RSI" or MACD with whatever it is commonly combined.
Im very new to trading but i get the impression that using ichimoku together with rsi and macd might make trading easier for me in the future, much easier to spot good entrylevels and when to bail out of them. Any other point of view from a more experienced trader would be much appreciated. Great video btw! Thanks
Thank you so much. I can't tell you how much this just all made sense compared to all of the other explanations that made no sense. New subscriber. Rsi video was awesome too. Big help. Thank you
Thanks David, you've added so much value to my trading strategy. I feel a major breakthrough this coming week after going over my current one; after watching many of your videos.. I have yet to put any real capital down, want to fine-tune it first before I go ahead and start trading (Which is the wise thing of course) I have $5000 ready to go, and really don't feel like losing anything :p. Look forward to seeing more of your content! Keep up the awesome work!
How are you trading there Joshua? Would love to know - I'm new to trading myself. Hope you've been killing it! Would love to know why if not :) All the best.
MACD is a major indicator for me. As David pointed out at the end of his presentation, it is a forerunner of whats to come. If you track it daily, you'll notice it will signal several days in advance (histogram) and first indicator to show a possible and probable change of direction is near at hand. When used in conjunction with other indicators, pretty effective. Also be aware, indicators are NOT crystal ball components. They are tools to describe the current landscape to help you decide your strategy. Used properly, they convey a convincing picture.
There are a lot many indicators like FIB, Stocashtic, RSI, MACD etc however i am using MACD as a permanent tool on my hotforex account since i started trading.
Important to note the signal given by the red/green flips as it goes onto the +ve axes. I.e green now means diverging, and red converging signal and main lines.
This video has really helped me understand this and I'll be able to utilize MACD in the future with my trades. Thank you very much, Pierce Brosnan! P.S: Don't believe Alec's lies!
Nice video. Did you notice the last three histograms before it crossed the zero line, had equal or lower highs? This divergence can be used as a "hint" that the rally was not as strong as it looked. I use this quite a lot in my own trading.
That is amazing and clear. Could you calrify if we can use the momentum and divergence in MACD to start getting ready for our next trade. Thanks in advance
I like this video you made. It is exp;ained very well plus the example made it very clear. I'm wondering if you have a video where you explain how to analize a stock's funcdemental. How do I know if the price is blown up or it's a good deal? Thanks for the great content
the problem with MACD and MA is that they work great for the "past" but they tend to give you the signal too late to catch lows and highs, use this AND other indicators like fundamentals, news, see where the money is flowing, and also your gut.
Like most indicators it has to use data of the past, if you buy and sell right when they converge you'll never truly buy a bottom or sell a top, there will always be that slippage. It is possible to extrapolate when they are "about" to converge with your own eyes however, i use BBands in unison to confirm a new trend to the downside or upside.
When the stock is in a trading range, the slow stochastic and bollinger bands work great! The question is when is the stock in a sideways trading range? As a filter, if the MONTHLY macd is positive and the WEEKLY macd is positive, I just hold the stock, it is trending UP and NOT in a trading range. If the MONTHLY MACD is negative and the macd is negative, the stock is trending DOWN and I short it. When the MONTHLY MACD and WEEKLY MACD are not in the same direction, the stock is NOT trending but pausing, so I use the Bollinger Bands and Slow Stochastic to trend the sideways consolidations. If the stock or mutual fund in moving very slow, both the Weekly and Monthly MACD give too many signals and this is the big flaw with the MACD, when the bollinger works best, the MACD does not work at all. Just avoid slow moving stocks, and use this MACD filter on stocks that are moving. A long term trend line or long term support and resistance also work well with bollinger bands to find support or resistance levels.
New to learning about about technicals and charts. If you're looking at MACD for something like the S&P what time frame should you be looking at? One, two, five years?
It's a very useful video. Can you also show us how to trade with different time frames? How to look at the indicators and interpret it correctly? For example, the MACD in Day, in 4Hour, 1Hour.. there are the differences in the way the indicator shows. How can I interpret it correctly to have a good trading strategy?
just my summary notes. :)
blue line = MACD = 26 period moving average - 12 period moving average.
green line = 9 day moving average of MACD
histogram = vertical difference between MACD and 9 day moving average.
when histogram is positive = buy signal, negative histogram= sell signal.
I think it would be DIF - MACD,so it should be 12 period moving average - 26 period moving average.
thanks
To confirm. When you say 9-day moving avg, you actually mean 9 period? I.e. if chart is set to hourly, then this data will be 9hrs and not 9 days?
@@pykalglobal7600 9 period means 9 candles
the best ever short video i had ever seen about MACD..thought and explained in a perfect way.
I've been backtesting MACD recently and on the daily it seems particularly reliable. Certainly not catching bottoms and tops but for an amateur to take every buy and sell signal the probability of winning over time is very good.
what other indicators do you use?
hello there professional trader, if this indicator is suitable for amateurs then what other techniques would you use?
@@jesper9622 it pairs well with the RSI
"how it might" - such sound advice. No over promising and over estimating. Also very refreshing to hear about tactics you don't normally consider either.
thats a really nice tool, aspecially using it on less random indixies like dji or normal stocks in high volatile phases like now..
Your teaching is crystal clear! 2 thumbs way, way up!
Macd really works for me... Been using this tool for my trading and i'm happy with my results now compared before. :)
Yes I agree Judy. I noticed a significant, marked increase in my number of winning trades.
MACD is amazing. It’s my favorite tool in addition to the Bollingers. I never lose with those tools. Plus I’m not greedy. I guess it’s also good for me because I’m really a scalper.
never lose?? lol ok
Hey Winston, I know you posted this comment 3 months ago, but I'm a new trader and I'd like to get some advice on scalping. I've only been using the RSI and and 5-day SMA. I've had some success, but other times I've lost big. How do you use your indicators?
@@aron7973 If you are "losing big", may I suggest the issue is not this indicator or that indicator. Look to your emotions, i.e. not taking stops, over trading, over sizing, etc. -best trading, -hg
David, well explained. I do use Macd to support my technical analysis. Thanks for sharing.
You are welcome, Jesus. New videos are published every week - make sure not to miss them.
Hi - when you change to a 5 day chart, is the time interval flipping to e.g. hourly or 30 minute? This would change the MACD signals if you were previously looking at a daily interval chart.
Could you guys go over the Detrended Price Oscillator?
Thanks for sharing your suggestion, Stavros. It was gathered as feedback.
Price action is the only leading indicator. "Indicators" are a good tool for confirmation of what you see in price as a function of momentum...
Most indicators are too prone to whipsaws. More useful for swing trading than day trading i'd say.
Indicators aren't supposed to work on non-stationary time series
Finally!! After a tons of nonsense explanation videos along the the week, Thanks!
You really make this look easy but I really love the way you explain things
Had to watch the video twice, but I got it the second time. The downward cross indicates a sell signal and the upward cross a buy signal. For a noob like me, this was a very easy to understand video.
Will look through some of your older (and newer) videos.
Now a subscriber. Keep up the good work!
Very nicely explained. One of the best explanation on youtube so far
Thank you, to me it was one of the best videos about MACD. I love Davids' videos by the way. Could you do one on "using MACD with RSI" or MACD with whatever it is commonly combined.
Im very new to trading but i get the impression that using ichimoku together with rsi and macd might make trading easier for me in the future, much easier to spot good entrylevels and when to bail out of them. Any other point of view from a more experienced trader would be much appreciated. Great video btw! Thanks
Many thanks David for clearing the concept.
After that explanation, I'm going to have to subscribe.
The most useful video I have seen by far
Thanks. Makes a lot more sense than textbook.
best investing videos on youtube thank you.
Man I am on a binge streak watching all your videos
Very well explained in the shortest manner.
Thank you so much. I can't tell you how much this just all made sense compared to all of the other explanations that made no sense. New subscriber. Rsi video was awesome too. Big help. Thank you
Thanks David, you've added so much value to my trading strategy. I feel a major breakthrough this coming week after going over my current one; after watching many of your videos.. I have yet to put any real capital down, want to fine-tune it first before I go ahead and start trading (Which is the wise thing of course) I have $5000 ready to go, and really don't feel like losing anything :p. Look forward to seeing more of your content! Keep up the awesome work!
How are you trading there Joshua? Would love to know - I'm new to trading myself. Hope you've been killing it! Would love to know why if not :) All the best.
Hope you didn't lose your $5000?
Thanks for this! I use 5-35-5 for a 2 min chart as it's more sensitive.
MACD is a major indicator for me. As David pointed out at the end of his presentation, it is a forerunner of whats to come. If you track it daily, you'll notice it will signal several days in advance (histogram) and first indicator to show a possible and probable change of direction is near at hand. When used in conjunction with other indicators, pretty effective. Also be aware, indicators are NOT crystal ball components. They are tools to describe the current landscape to help you decide your strategy. Used properly, they convey a convincing picture.
Thank you, I was already checking these lines, but only use the 0 line in the center. Did not knew about these crossovers.
Your explanation was simple and straightforward, and it helped me so much
Excellent Job , explaining this Thank You 👍🏾😊
This video made no sense to me last week when I watched it, but now I understood everything
wow thank for explaining this. im beginning trader and this help out a lot along with ema, vwap,rsi,macd
Great Video, Explained Perfectly as I am a beginner trader. Thank You.
Thanks explained well!
Watching from India
There are a lot many indicators like FIB, Stocashtic, RSI, MACD etc however i am using MACD as a permanent tool on my hotforex account since i started trading.
Excellent as always. May I suggest that please slow down a bit on your videos so that we can follow up thoroughly!
Great video, great lesson. Short and goes in depth just enough to understand. Thank you!
Important to note the signal given by the red/green flips as it goes onto the +ve axes. I.e green now means diverging, and red converging signal and main lines.
Very clear and concise explanation!Thanks
This video has really helped me understand this and I'll be able to utilize MACD in the future with my trades. Thank you very much, Pierce Brosnan!
P.S: Don't believe Alec's lies!
Excellent and clear. Thank you.
Nice video. Did you notice the last three histograms before it crossed the zero line, had equal or lower highs? This divergence can be used as a "hint" that the rally was not as strong as it looked. I use this quite a lot in my own trading.
That is amazing and clear. Could you calrify if we can use the momentum and divergence in MACD to start getting ready for our next trade. Thanks in advance
Excellent explanation thank you so much !!!!!!!
The MACD is great for confirmation. It is not a leading indicator however.
that's it!
So what’s the leading indicator?
Price action and volume
how can you use volume as a leading indicator?
LOL That's every tool related to trading.. none of them are leading indicators.. everything is for confirmation.
Great video. Really appreciate your teaching style
Great explanation
Thank You Very Much your are the only reason this made sense to me. I pray for good fortune for you sir 🤙🏽🤙🏽🤙🏽
Great content, about to check out some more of your videos!
Great example
I think the best way to use MACD is to combine it with S/R zone and price action and just use it as the last confirmation for your trade.
Is that stop and reverse?
wow really great explanation. so many others make this complicated.
I like this video you made. It is exp;ained very well plus the example made it very clear. I'm wondering if you have a video where you explain how to analize a stock's funcdemental. How do I know if the price is blown up or it's a good deal? Thanks for the great content
Thank you and very helpful for me as a beginner!
Excellent video on MACD indicator. Thanks a lot i am going to apply it now.
Clear video & pleasant sound. Thanks!
Sir your Videos are very good with full of information. Thanks
He sounds and looks like Peries Bosnan (James Bond).. I am subscribed for that.
You explained that really clearly and I have it now! Thanks!
Thank you for the explanation. It really is simple to understand.
Thank you. You explained the MACD very clearly
Please suggest a free website for technical analysis charting. Learning a lot from your videos.
Thanks for explaining so beautifully..
this was such an informative video, you made this so easy to understand
Great information
Informative, thanks
Love your vids David, very simple, concise, beautiful explained and short resulting in sweet results for us. Thanks 🙏🏽
nice explanation mate
the problem with MACD and MA is that they work great for the "past" but they tend to give you the signal too late to catch lows and highs, use this AND other indicators like fundamentals, news, see where the money is flowing, and also your gut.
Actually positive and negative divergence is predictive
Like most indicators it has to use data of the past, if you buy and sell right when they converge you'll never truly buy a bottom or sell a top, there will always be that slippage. It is possible to extrapolate when they are "about" to converge with your own eyes however, i use BBands in unison to confirm a new trend to the downside or upside.
Nice explanation
I really think the MACD would make a great exit indicator!!
How
Good explanation
I wonder how to use this indicator. by the way you are good instructor
This is great information, I had an idea on how to use the macd...but now feel much more comfortable with it....Thanks!
That was a good straightforward explanation. thanks
an excellent presentation
Great explaining vid, keep the great work up ;)
THANKS! this was really well made!
Thank You David, as it looks you need multiple indicators. I am looking forward to more lessions.
When the stock is in a trading range, the slow stochastic and bollinger bands work great! The question is when is the stock in a sideways trading range? As a filter, if the MONTHLY macd is positive and the WEEKLY macd is positive, I just hold the stock, it is trending UP and NOT in a trading range. If the MONTHLY MACD is negative and the macd is negative, the stock is trending DOWN and I short it. When the MONTHLY MACD and WEEKLY MACD are not in the same direction, the stock is NOT trending but pausing, so I use the Bollinger Bands and Slow Stochastic to trend the sideways consolidations. If the stock or mutual fund in moving very slow, both the Weekly and Monthly MACD give too many signals and this is the big flaw with the MACD, when the bollinger works best, the MACD does not work at all. Just avoid slow moving stocks, and use this MACD filter on stocks that are moving. A long term trend line or long term support and resistance also work well with bollinger bands to find support or resistance levels.
Thank You coach
Thank you sir 😁
I think MACD with EMA 200 are great combination for more accurate and better results .
All I get is combining between candle stick pattern and macd. And I found it is very solid for stock. How bout your taught sir?
Love your videos, always very helpful with the fundamentals
thank you i really needed this video and its already been a great help in understanding data analysis
I really like your explanations
nice guide
New to learning about about technicals and charts. If you're looking at MACD for something like the S&P what time frame should you be looking at? One, two, five years?
Great video
You're a very good Instructor 🍻
It's a very useful video. Can you also show us how to trade with different time frames? How to look at the indicators and interpret it correctly? For example, the MACD in Day, in 4Hour, 1Hour.. there are the differences in the way the indicator shows. How can I interpret it correctly to have a good trading strategy?
Great information, wish i had seen this video when i first started. Great insight, golden info. keep it up
As always, very useful! Thank you for your content.
im new to trading, this is very usefull to me, thank you sir
Thanks a ton for this great video!!! :D
Great video thank you men & your honesty Keep up with the good stuff.
Exactly what I was looking for. Thanks
cheers mate, 212 stuff is most helpfull