MACD means Moving Average Convergence Divergence.
Sounds complicated?
Alright Let's See.
MACD has 2 lines:
Fast Line (the MACD Line)
Slow Line (the Signal Line)
When these lines cross each other, on that time the magic happens in the market!
Why is MACD Important?
It tells you when momentum is up or down.
It helps you see if the price might change direction soon.
Think of it like your mom telling you:
Baby stop eating too much! Otherwise you will go to the toilet!
How does MACD work?
✅ MACD Line > Signal Line = Price might go up
It means the fast line is above the slow line. This shows the market might be going up or getting stronger!
✅ MACD Line < Signal Line = Price might go down
It means the fast line is below the slow line. This shows the market might be going down or getting weaker!
When these lines move apart, the market is strong like Lion.
When they’re close together, the market is sleepy like Rabbit.
Example
@SnEmroz have 2 kids and they racing for ice cream.
The first kid MACD Line/ Fast Line is always faster.
The second kid Signal Line/ Slow Line tries to catch up.
When the first kid crosses in front of the second kid… the ice cream store door opens!
In that time you have need stolen the ice cream from my kids! 🤣
Some Questions
Q: When is MACD most useful?
✅ A: In trending markets! Not when prices are flat like a pancake.
Q: What if MACD doesn’t work perfectly?
✅ A: No tool is magic. Always use other indicators and risk management!
Personal opinion
👉 MACD = Dancing Lines.
👉 Use it to spot trends and momentum.
👉 But don’t just dance – trade smart!
Tomorrow: We talk about RSI.
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