🔁 MACD — The Trend Reversal & Momentum Combo You Need!
Want to catch early trend shifts or confirm the strength of a move?
👉 MACD helps you ride the wave — and exit before it crashes! 🌊🚀
Welcome to Episode 20 of:
"Learn Indicators Like a Pro" 🔍
Today’s topic: MACD (Moving Average Convergence Divergence) — The King of Trend + Momentum Trading
🧠 What is MACD?
MACD = Moving Average Convergence Divergence
It’s a trend-following momentum indicator that shows changes in strength, direction, and duration of a trend.
It has 3 parts:
MACD Line (fast)
Signal Line (slow)
Histogram (shows the distance between them)
⚙️ How MACD Works:
✅ 1. Signal Line Cross
MACD crosses above Signal → Bullish shift
MACD crosses below Signal → Bearish shift
📈 Most common signal used for entries/exits
✅ 2. Zero Line Cross
MACD above 0 → Bullish market
MACD below 0 → Bearish market
🔁 Confirms overall trend direction
✅ 3. Histogram Momentum
Bars growing = Momentum increasing
Bars shrinking = Momentum weakening
🧠 Great for detecting trend exhaustion before price reacts!
🔍 Pro Usage Tips:
✅ Works best on 1H to Daily charts
✅ Combine with RSI, support/resistance for accuracy
❌ Avoid in sideways/ranging markets (can give false signals)
✅ Use divergence for early signals:
Price makes higher high, MACD makes lower high → Bearish divergence
Price makes lower low, MACD makes higher low → Bullish divergence
📌 Next Episode: Bollinger Bands — Spot Volatility & Explosions Before They Happen 💣📉📈
Follow now to learn how to detect squeezes, breakouts, and reversals like a volatility sniper!