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Moving Average Convergence / Divergence (MACD)

MA Ribbon and MACD setupThank you to John Mann for the MA Ribbon This setup allows you to enter the trends early but safely. I use this for a day chart but also sometimes an hour chart. I believe it can be used for any chart but is best used for longer charts. I use a weighted ADX with a length of 8 to determine if the market is trending. I only enter a trade if the ADX is above 40 ALWAYS try to enter at the begining of a trend ALWAYS try to enter when the MAs are splitting apart rather than clustered together Long Entry MA Ribbon has crossed itself and is headed upwards MACD line has crossed it's MA line and is headed up Whatever indicator you'd like to use to determine if the market is trending shows that the market is trending (ADX above 40) Short Entry MA Ribbon has crossed itself and is headed downwards MACD line has crossed it's MA line and is headed down Whatever indicator you'd like to use to determine if the market is trending shows that the market is trending (ADX above 40) Use trailing stop to exit trade (or any exit method you prefer) Easily make 300-2000+ pips in 15-30 days.
by jatnip64
Still believe in the USD Weakness to come, this is why.I have not used the MACD indicator for quite sometime, but this afternoon's discussion with a fellow trader made me look at MACD again today. The USDollar Index is approaching the resistance trend line and at the same time, the MACD is showing us a bearish divergence. Price made a higher high, but the MACD made a lower high. As what all indicators do, they give us a probable indication of what is to come (remember nothing is certain). Hence I am looking for trades with USD weakness
FX:USDOLLARShort
by BoonHooi
3
No direction on USD/JPYUSD/JPY is trading in a range. What we want to see is breakout to either direction, but since MACD is making lower highs we favor break to the downside also 110 is a round number and therefore huge resistance level for us. 1. If we get a break to the downside our profit taking area will be between 106.50 and 106.00 area and stop loss above the range area. 2. If we get break to the upside AND MACD crossover, then our stops will go below range, while profit taking area will be around 112.00.
by DP_TRADING
Bearish Head and Shoulders forming on SPYA combination of lukewarm earnings for Q1 and talks of an impending Federal Reserve interest rate hike seem to be slowing down the bullish recovery we've seen in the S&P the past several weeks. On the technical side, notice the failure to attain a new high. In fact SPY has consistently been unable to break new highs going back to May 2015, when the bear market truly began. Further, note the bearish head and shoulders pattern forming, Heikin Ashi candles with longer wicks to the downside, and somewhat strong resistance from above via the Ichi Moku Cloud. Recommendations for a short trade: wait for the price to decisively break the neckline with a strong bar. The next fibonacci level serves as a decent profit target at about $200. Note that there is a relative vacuum between the hypothesized entry point and this value, aside from one level of support indicated by the dashed red line. For a stop loss, consider the apex of the right shoulder.
AMEX:SPYShort
by quantguy
Bull in the next day or two for INSYS - Unless we go into an all our recession, I'm pretty sure this stock will keep doing it's own thing (based on beta). With that said, it's looking like over the first few hours on Monday this stock will do some dropping, most likely hitting the 1.618 pitchfan line created on the weekly and overlaid on the larger pitchfork. The area of the 1.618 is very close to the .318 trend-based Fibonacci line. The large pitchfork warning line (orange) is still close, and if crossed could mean a reversal for the median is underway. We shall see. If the stock does continue down, we need to pay attention to the more recent, pitchfork, pitchfan, and yellow warning lines.
ILong
by Bwinks
GBPAUD Short, Target at least 500 pips!Looking at a 1 hour chart, there are great things going our way. We see that the ADX shows very low power, and that the pair will make a big move soon. Since the ADX shows power being built up, we need to look for which way the move will be. The MACD shows downward momentum, and there is also divergence in the MACD. Take a look at the RSI. There is also divergence in the RSI. The pair is reaching a pretty high point. 2 things might happen. 1. The pair will go up, spike, and then drop hard. 2. The pair will have a decent drop, work its way back up, the EMA's will cross down, and the pair will tank. Either way, downtrend if forming. If you want to be risky, but safe, don't place a stop loss within 300 pips above where it is currently at. We could see this pair run up a little bit more, but probability shows that it should go down. Also, 4 hour charts show divergence.
Short
by Jacksonian
3
GBPCAD Divergence LongThe 1d chart on the GBPCAD is showing lots of divergence. The ADX is also falling indicating a large movement could be coming soon. With all the resistance there is a high probability that it will go long. Also the 4h 40 and 110 EMA are about to cross showing a great probability of a long. Both pairs are very weak right now so wait a little bit to see what goes happpens. So possibly a short term downtrend with a long term uptrend. AGAIN WAIT BEFORE YOU TRADE THIS PAIR. The weakness in both pairs makes it unpredictable. But in a few days to a week defiantly long.
Long
by Eliphaz
Bull for mid-day (QIWI)A very respondent stock in regards to Fibonacci analytics. The colored flag is from the trend based (12-month) retracement. Layered on top is the 1 month high/low Fibonacci retracement. I added a hourly and a daily fib arc (which the price action is currently trading within). Stochastic, CCI, and MACD look ready for bull switch over (though temporary). I'm sure this is a strong enough bull for some nice profits tomorrow for anyone afraid of options or short selling in other markets.
QLong
by Bwinks