Get started

Moving Average Convergence / Divergence (MACD)

Setting The Stage For Years To ComeThis Is The Only Thing I've been able to look at lately. For everyone like myself at times that feels anxious and uneasy about the market, I say zoom out. I find it very correlated that this extremely large formation took place after the last halfnin'. Could We see something similar play out if this break to the upside? Could massive volatility and fomo send us much higher then expected? Of Course, just as this formation also paints a very possible doom for Crypto as a whole. The break of this formation will decide the next 6 months of price action and based on anyone's trend line, were nearing its completion. I have two descending lines: One, from 20k to 14k Highs, This Line remains intact and untested since 14k Local high. Two, from 14k High creating what most concede is the top descending resistance channel line that were currently in. Weekly shows this as our 3rd attempt at leaving this descending channel, the break of which would almost certainly provide enough fuel to break through the second resistance line. I Present this chart with MACD in full view so you can get a sense of just how long and powerful this formation is. RSI, Volume and MACD have all respected this triangle and eagerly await its decision. ENTIRELY a guess but I'd say were somewhere around 75-80% through this formation. Could we have another pull back all the way to test 5400ish? maybe but if we retrace that far I feel like it would already be over. Conversely If we break 10.5K to the high side and open/close, Were looking at air above us. I Would Look to the 100 Weekly EMA as a guide. Which ever side of the triangle the 100 moves us out of, it'll most likely be a long time confirm of macro trend change/continuation
COINBASE:BTCUSDLong
by F0urL34f
AUD/CAD in a possible sell and indicator are overbuyToday at night, there are a interesting analysis to entry in a short position. Waoh, there are an armonic pattern bearish with possible proyection of 0.78 and 0.61 of Fibonacci of the weekly that I draw it. Also, if you look up a yellow zone, this is a great zone paint of yellow that represent a strong resistance, this is a not signal to continue bull, I do hope of this par that validate the RSI and MACD to sell it, very important, I draw in the RSI a blue line if the RSI began to do a high lower and the price is began to do a high lower, this is a signal for sell. Also, se need to validate as third point if this possible manipulation is going to accomplish if go to make a pull back in the zone resisteance once that quitting quickly all participants in the market for eating it their stop loss. Take precaution of this par, its a great opportunity to enter a short. Tomorrow morning I go to continue make thsi analysiss. Proyection is 0.618 or 0.782 of Fibonacci, and its accomplish, we can to take decision to see what could happening of there area.
Short
by harisonhbn9718
1
Swing Trade to 12/20I entered a nice setup on EUR/CHF that I want to share with you guys. First off I'm more of a swing trader rather than a scalp trader. It's much easier for me to spot reversals, and I'm a very patient trader, as such swing trading is my favorite game. Okay, so let's get on with it. On the daily we can see the price broke out of of a falling wedge, and price has tested the top of the wedge, which was previous resistance, now as current support. Add to that bullish RSI, bullish MACD cross, as well as a 3 soldier daily candle formation. Then on the weekly the weekly RSI just made a bullish cross above the 30, and we can see the macd converging and prepping for a bullish cross. So I took a fib measurement from the top, which was at the first quarter of 2018, to the bottom (I hope it's the bottom...lol) and am aiming for the halfway point at the 50% fib. And I have place my stop below the low and have entered on the Bullish engulfing which is about to close for the week. Let's see how this goes, but the confluence and technicals look really good. I'll be holding this till the end of the year. Let's Go!!!
Long
by ChartCrushers
2
BTCUSD 4H MACD TREND FOLLOWING STRATEGY(Rules for A Buy Trade) Step #1: Wait for the MACD lines to develop a higher high followed by a lower high swing point. The first rule of thumb to recognize a swing high on the MACD indicator is to look at the price chart if the respective currency pair is doing a swing high the same as the MACD indicator does. A higher high is the highest swing price point on a chart and must be higher than all previous swing high points. While a lower high happens when the swing point is lower than the previous swing high point. Step #2: Connect the MACD line swing points that you have identified in Step #1 with a trendline. At this point, we really ignored the MACD histogram because much of the information contained by the histogram is already showing up by the moving averages. Look at the price action now and compare it to our MACD trendline we drew early. We can clearly notice that the MACD contains the price action much better and reflects the trend much clear. But, at this point, we’re still not done with the MACD indicator, which brings us to the critical part of our MACD Trend Following Strategy. Step #3: Wait for the MACD line to break above the trendline. (Entry at the market price as soon as the MACD line breaks above). When the MACD line (the blue line) crosses the signal line (the orange line) it’s an early signal that a bullish trend might start. However, if trading would be that easy we would all be millionaires, right? And that’s the reason why our MACD Trend Following Strategy is so unique. We’re not only waiting for the MACD moving averages to cross over but we also have our other criteria for the price action to break aka the trend line we drew early. This is a clever way to filter out the false MACD signals, but you have to be equipped with the right mindset and have patience until all the piece of the puzzle come together. If you were to trade just based on the MACD crossover over time you’ll lose money because that’s not a reliable strategy. But if you use the MACD indicator along with other criteria such what this strategy tells you to do, you will find great trade entries on a consistent basis. Step #4: Use Protective Stop Loss Order. (Place the SL below the most recent swing low). Now, that you already know how to enter a trade at this point you have to learn how to manage risk and where to place the SL. After all, a trader is basically a risk manager. You want to place your stop loss below the most recent low, like in the figure below. But make sure you add a buffer of 5-10 pips away from the low, to protect yourself from possible false breakouts. Basically, a good entry price means a smaller stop loss and ultimately it means you’ll lose a lot less comparing it with the profit potential, so a positive risk to reward ratio. Step #5: Take Profit when the MACD crossover happens in the opposite direction of our entry. Knowing when to take profit is as important as knowing when to enter a trade. However, we want to make sure we don’t use the same trading technique as for our entry order. When the MACD line (the blue line) produces signal line crossovers (the orange line) we want to close the position and take full profits. Before taking profits, it’s important to wait for the candle close – either the 4h or the daily candle – depending on the time frame you trade so you make sure the MACD crossover actually happens. Note** The above was an example of a buy trade using the MACD Trend Following Strategy. Use the exact same rules – but in reverse – for a sell trade.
COINBASE:BTCUSDEducation
by Tradingstrategyguides
2