⚡ MACD — A trend-tracking monster!

Want to ride the trend and detect momentum changes early? MACD reveals everything.

👉 Learn how to detect reversals, trend strength, and hidden divergence professionally 📉📈


Welcome to Episode 15 of:

"Understand indicators like a professional" 🔍

Today's topic: MACD — The secret to reading trend and momentum at the same time!



🧠 What is the MACD indicator?


MACD = the difference between exponential moving averages

Shows you when the trend starts, weakens, or reverses.


Consists of 3 main elements:


  1. MACD line = the difference between fast EMA and slow EMA


  2. Signal line = average of 9 candles of the MACD line


  3. Histogram = the difference between MACD and signal line (as bars)




🔥 Why is MACD so powerful?


  • Confirms the trend direction


  • Reveals momentum strength


  • Discover divergences (early reversal signs)


  • Excellent in clearly trending markets




🚀 How to use MACD like professionals:


✅ 1. Crossover strategy

  • MACD crosses the signal line from below → Buy signal


  • MACD crosses from above → Sell signal

    ✅ Combining it with support/resistance or volume increases accuracy



✅ 2. Discovering divergence

  • Price makes new highs but MACD makes lower highs = negative divergence


  • Price makes new lows but MACD makes higher lows = positive divergence

    📈 Excellent tools for predicting trend reversals



✅ 3. Reading the histogram

  • If the volume of the bars increases = momentum is increasing


  • If the bars have decreased = momentum weakens

    📉 Use it to detect the beginning of the trend's end before the price moves




⚠️ Common mistakes:


❌ Using MACD in sideways markets = many false signals

❌ Ignoring trading volume — Must have confirmation

❌ Reacting to every crossover without understanding the context



📌 Next episode: Stochastic RSI — Double strength for accurate signals 🔄🔁

Follow me now to learn how this advanced indicator detects explosive entry opportunities from the tightest ranges!