This was a classic case of Bearish MACD divergence. The price was forming higher highs and the MACD was forming lower Highs. This could be a good reason to take a trade signal opposite of the trend. With out such indications trading reversals can be risky.
I am fairly new to this but have been testing out this technique with stochastics and MACD and it works well for me. Once stoch goes bullish from oversold, wait for MACD to cross and confirm a bullish trend is emerging and buy. When we have reached a peak and it's time to sell - stoch will cross to bearish from overbought followed by MACD. This works well with...
Just stumbled across this 15 minute DXY chart which reminded me of why I don't use indicators much.
Hi fellows, MACD can be used for early indication in diverging market. MACD gives signal that price is going to change its direction very soon. If MACD shows sharp rise and fall and at the same time price forms impulse on the chart against the previous trending and diverging market then this indication can be used for change in trend direction.
Some of you have asked about spike trading. One way I calculate future spike is by using my Fibs. I draw the height of the fib to match the height of the Macd & Accumulation/Distribution, then I draw it to the bottom of the Macd/Accumulation. You should notice that they precede each other. In other words they both end up in the same direction
Really fun Tut session and another really cool chart to post on the board. Today we specifically looked at CRI's modified MACD Histogram momentum study. How did it come about, what's its purpose and how to use it in your daily trade setups. If my charts help you, or you use my indicators... please consider a BTC donation to allow me to continue my work :...