🔥 If you want to know when the price accelerates or retraces, the MACD is your hero
🐾 Step by step, we understand and benefit from it:
1. What is MACD? 🤔
Short for Moving Average Convergence Divergence
Simply put: it measures the difference between two moving averages (EMA12 and EMA26) and provides a signal line (EMA9) to determine momentum
2. Its Most Important Signals 🧭
• 🔁 Bullish Crossover:
When the MACD line crosses above the signal line → Indicator of the start of buying strength
• ❌ Bearish Crossover:
When the MACD line drops below the signal line → Signal of selling pressure
• 📈 Histogram:
The bars above zero indicate bullish acceleration, and below zero indicate bearish acceleration
3. How do you use it practically? 🔍
1. Open the chart on a 1-hour or 4-hour timeframe
2. Choose the default settings (12, 26, 9)
3. Watch the Crossovers and Histograms:
Buy entry at the bullish crossover with histogram bars rising above zero
Sell entry at the bearish crossover with histogram bars dropping below zero
4. Quick Example 🕯️
On the 4-hour timeframe:
A bullish crossover for the MACD appeared above the signal line
The bars started to increase above zero
→ We entered a buy and placed a small stop loss below the candle low where the crossover occurred
5. Professional Tips 💡
• Don't rely on the MACD alone: combine it with support/resistance levels
• Place a stop loss 1–2% below the crossover level
• Try the strategy on a demo account before going live
✨ Share with us:
What is the best result you have achieved using the MACD indicator only? 🚀