Understand Indicators Like a Pro" 20"
🔁 MACD — The Smart Indicator for Discovering Major Shifts!
Do you want to know when a trend starts or when it weakens before it's too late?
👉 MACD reveals the beginning of the explosion... and the end of strength! 🚀⚠️
Welcome to Episode 20 of:
"Understand Indicators Like a Pro" 🔍
Today's Topic: MACD — The Best Indicator for Combining Momentum and Trend
🧠 What is MACD?
MACD = Moving Average Convergence Divergence
It is a trend-following indicator that measures momentum strength at the same time.
It consists of 3 elements:
Fast MACD Line
Slow Signal Line
Histogram (Bars) — Shows the difference between the two lines
⚙️ How does MACD work?
✅ 1. Signal Line Crossover
MACD crosses above the Signal Line → Buy Signal
MACD crosses below the Signal Line → Sell Signal
📈 This signal is the most commonly used for entry and exit
✅ 2. Zero Line Crossover
MACD above 0 → Bullish Market
MACD below 0 → Bearish Market
🔁 Confirmation of the overall trend
✅ 3. Histogram Reading
Bars getting larger = Increasing strong momentum
Bars getting smaller = Weakening momentum
🧠 Use it to detect trend fatigue before the price actually reverses!
🔍 Professional Tips: