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 …
Comments
i am a scalper and i find the macd unrelaible with 5 min chart..
the best time frame for divergency is 4hr tf because the short tf’s are so risky because of news releases
Thanks for the wonderful explanation. I loved it,
i found this forex system based on price action
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I don’t use any indicators anymore, trade purely on market movement
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
The best stock program in YouTube!
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.
@RudyMvp Damn, pretty solid results.
@NoShame86 jealous, much?
why should i feel jealous when people like you contribute to my paycheck issued by my broker at the end of every month? 
haha, you have a broker. that tells us everything 
lol you doesn’t seems to understand what im talking about huh? broker? my trading account? make sense to you?
So you dun trade with broker? u opened ur own bank to trade? haha
it would be called a “brokerage”. I do it myself online. a broker is a person who does the buying and selling FOR you
Thanks for sharing this.
Great! thanks
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
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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.
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
October 30th, 2009 at 3:17 pm
yup, have good experiences with that too