Learn Five Powerful MACD Trading Strategies

Hello everyone this is Dahlia here hope you’re, well, the topic we will cover today is the MACD moving average Convergence divergence I thought as you covered this topic based on some of the comments and requests we had this week it is also very interesting to note that this strategy we are about to discuss was used in a trading competition one of the forex trading competition by someone who identified themselves as effortless abundance, so I will grieve I’ll give credit to them for creating this strategy, so on the screen is the topic we will cover with this cosmic deal we will discuss the to mark these settings we are using we will look at the different type of entry signals the trend the entry counter trend bullish divergence bearish divergence and, then we go through the list of rules have been made available in a table and finally we do a practice we’ll go into a life chart and, then we pull up a life chart to see how we can make use of these strategies to trade, so what is Mukti mark D is a trend following momentum indicator that shows the relationship between two moving averages of price, so the usual MACD has a setting of 12 26 9 which is fast EMA 12 slow IMA 26 and the MACD SMA 9 this is the instagram is actually the difference between the fast and slow EMA this is the zero line this line here is the mug DSM a line which we have signified as nine okay, but we are not going to use these standard settings we are using our own custom settings okay, so this is the first mark these settings that we will use we call this one the big mark D, so we call it big mark D and we make use of a white color for it, so the setting is 12:26 one, so you see it has instagram as we have discussed the zero line above zero line is an uptrend which is the positive zone below zero line it is downtrend which is the negative zone notice that the SMA here is just along the east Graham reason is, because our settings for that SMA is one this is the second MACD we will use we call it the small MACD we use yellow color for it and the settings is five fifteen and one the same thing that applied to the big mug D also applied to this as, well, the difference is that this mug D has smaller settings and it react to price movement very fast faster, because of the settings okay by using these two magnets together we achieve three things will be able to have a confirmation of our trade we were able to reenter a trend, so like the entry strategy and, then we can do a counter trend strategy, if we apply these two ma together okay, so this is how the two MACD will look like on your chart, so you have the big mug tea with 1226 1 and the small mug deal with 515 1 they both have their own zero line this is zero line for the small yellow MACD and the zero line for the big white MACD the first entry signal is called the trend entry signal, so what is trend entry signal it is the cross over thrown negative zone to positive zone across the zero line, so where market across the zero line upward is a buying signal when Magda crosses the zero line downward is a sell signal however we only need the small MACD the yellow one to cross and we need the white big one to point in the same direction as the small MACD, so here you have a buy signal, because this small one has crossed and, then the white one is pointing same direction similarly here the yellow mark B has crossed downwards and the white smug D is pointing same direction a sell signal from here similarly a sell signal from here yellow as close down the big MACD is also pointing same direction and finally we have a buy here, because yellow is crossed above the low line and the white is pointing in same direction note that we have few other signals that we didn’t show up here, because of space on this screen there’s a signal here there’s another signal here, so this is the trend entry signal it is one of the reliable entry signal we will discuss today the next one is the entry signal as the name suggests it is when a trend is already going on and you want to enter the trend, so this is a by position from the former trend entry, so the trend is ongoing and, then you want to enter, so what you need to look for you need to look for the smaller MACD to dip below the zero line and, then come back up, so go against the trend and, then come back up to follow the trend, but while the snow Magdy is doing that the big mark they still continue with the trend the big mug did never dip below zero line is always above zero line only small MACD dip and, then come back, so this is cont this is the reentry signal at this point you will enter a by position you can see is a good-bye position our profit target for this type of entry is between is between 20 and 40 pips also for the trend entry is between 20 and 40 pips, but I’ll suggest use 40 pips, because you will be able to get 40 pips easily on this strategy we are employing one-hour chart or 4-hour chart, so contact trained Cigna out of all the signal we will discuss today contact trend is the weakest in fact I have taken this slide out of this presentation, but decided to add it back for information purposes only reason is you are trading against the trend, so here the trend is up, but a signal contact trend signal is generated when the small mark D crosses below the big mark D, so sell signal whereas we are uptrend, but he give us a sell signal the same thing here we are done trend the yellow mark Diaz crosses crossed above the whites MACD we got a buy signal another sell signal here we are uptrend the yellow crosses below the white mark D giving us a sell you could see that even here are whoohoo laughs make a good pips, because it’s a good signal, but, if you consider it of a period of time and there are, so many false signals, then it will not be profitable on a long run recommended take profit target for this strategy is 10pips remember the first two strategies or the signals is 40 pips for this is 10 pips, if you will actually trade it at all, now we have bearish divergence signal what is divergence, so you need to understand what divergences it occurs when the price of a financial instrument and the value of an indicator move in opposite direction, so, if we join these two highs together this is the previous eye and the current eye with a trend line it shows prices going up chili however, if he joined the same two points together on the indicator price is going down this is called bearish divergence, so indicator is telling us that this is going to fall very soon price will fall very soon, so we are standby to take a short position before, then we make sure daddy the smaller MACD has crossed down and, then we wait for two more candles just give us give ourselves some breathing space to make sure that the devices actually is real before we shot this trade, so we show the trade here following the divergence the bullish divergence is does the opposite of this price in the case that this US the Japanese is falling mean why the indicator says the opposite, so that means we are ready for a buy, because the indicator rules we are ready for a buyer, so we wait for two more candles after confirming the divergence we see that the small MACD is already above the Big Mac P we just wait for two more candles and from here we go long okay, now I know there’s, so many rules that we have talked about, so to make life easy for everybody here is the table for the rules, so the rules where these are all the sell trade rules take profit for all of them is 20 to 40 pips Alice’s 40 pips as served the counter trend strategy the contract rent Cigna which only recommend 10 pips and the same thing applies to the long trade rules ok, so, now we are going to go and look at the live charts and see how we can apply these trading rules ok, so this is a USD Japanese yen one-hour as I said before we will use either one hour or four hours and that is what is being used successfully on this strategy, so, now let me show you how we can make this MACD okay, so it’s already here, so I will delete it and we create a new one, so you drag the MACD onto your chart and, then you give the parameter the first one is the Big Muddy, so we make it twelve twenty six and one color could be anything we just make it white color and, then the level who said level zero and, then color we make the line a little bit bold, so we can’t see properly, so this is our first MACD this is the Big Mac D with 1226 one settings, now we want to add a second mark D which you will not just drop it on the charts you will not also just say attach the chart no you will drag it on top of this current MACD that we have here already and, then you put its own parameter which is five fifteen one and the color we say we want yellow to be the color for the smaller MIDI and, then we have zero level as, well, and we make it a bit ticking that’s it, so, now we have our two MACD together, so let’s see how we can apply these to trade, so we can start anywhere on this chart, so let me put a line here, so let’s start from here, so we see we see that MACD as cross up off here, so that’s a trend Cigna here, so he crossed above I will see that’s the smaller MACD as cross above zero line and the big MACD is pointing upward that’s a by trade, so we put a stop loss just below here below the swing low and we are looking for 40 pips from our buy position do you have 40 pips yes we have 40 pips we have actually more than 40 pips 154 pips, so we move on to the next trade we look for the nitrate the nitrate actually is a sell trade over here, because the small mark big crosses below zero line and the white mark D or the big magnet is pointing downwards, so this is a position, then we put our stop loss just above the swing high over there and, then we want to look for 40 pips from the entry position, so 40 people do have 40 pips yes we have 40 pips we have way more than 40 pips walk around 47 pips, so we move to the next trade we look for the next trade okay, so this is the nest trade, but look when the smaller market crosses above the zero line the big mark did remain on the zero line that is what we call the entry signal the big mark this still remain bearish that is done trend by the small MRD pop-up be above zero and pop back down, so it gives us opportunity to shut the markets immediately it popped back down, so here is the signal to sell, so we’re going short here in fact our stop loss is better, now, because you be here rather than up there is, now here and we will look for our 40 pips do we have 40 pips oh yes we have known our 40 pips 120 something pips, so guys this is how this system work all the trades we have taken, so far seems to be positive I am NOT saying this is a hundred percent win strategy, but, if you play it properly there is a high wind percentage and let’s look at some divergence trade okay this is this is a bullish divergence you see here these are the two low points the previous low and the current low point and let’s do the 70 on the indicator, so when we find the low here you can see that indicators steady nose price is going up, but in real actual price went down, so this is bullish divergent, so we will from here will be looking to take a by trade, so you wait for just two candles more, then you put a buy trade here okay, now let’s look at a bearish divergent, so here prices is going up let’s see what the indicator says, so, if you go down here indicator says price going down, so we are going to short the market, but we need to wait for two more candles, so at the end of the badges wait for this card and I can do, so we go short from here, so we’ll go short from here like this straight for example you know I’m an art and encouraged to check it, because the stop-loss is too high compared to the 40 pips you want to make, so you might not take it, but in case you take it, then you going to have your 40 pips this is 50 pips, so you couldn’t have your 40 pills, so guys we have gone through four five trades currently and they all seems to be positive, but there will be times when this will not work, so that is why you need to put your stop loss at the right places consistently you can make 40 pips, so, if you have one trade in a day you have to have different PS opened, so you are not creating just USD definition you are trading all the images, so let’s say you have 10 pairs open at least one of the spear will give you a trade in a day and, if you make 40 pips in a day with this strategy I think you will be alright, so guys this is what I have for you today I hope I’ve been able to show you that with this with the combination of these two mark destructed these two MACD indicator you have better chances of accurately entering position putting your stop-loss and your profit target and also we are able to show you that using one single MACD has a bit of disadvantage, so guys thank you, so much for watching this video this indicator mark and the template you can create it yourself however, if you want me to send it to you I will be more than happy to do that just make a comment on the video and, then put your email address I will send the template to you, so once more, if possible can you share this video on your social network pages, if you can, so that we can help other people other traders out there that need our help ok guys thank you, so much for watching do not forget to subscribe please, so that it will encourage us to put more content like this on our platform, so thank again thank for watching and I’ll speak to you soon is Derek.

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