#التــــــدوال_فــــن_وأسلـــــــوب
-----------Every trader has their own style and art-----------
----------------And you will learn some trading techniques-----------
We will take three indicators:
( RSI, MA, MACD)
--------------------Third (MACD)-----------------------
The MACD (short for Moving Average Convergence Divergence) is one of the most famous technical indicators in trading, helping you discover changes in momentum and trends and the strength of the market!
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1. The basic parts of the MACD:
- The blue line (MACD Line):
- It is the difference between the fast moving average (12 days) and the slow moving average (26 days).
- Its formula:
`MACD Line = EMA12 - EMA26`
- The red line (Signal Line):
- It is a moving average of the blue line itself (usually 9 days).
- Its formula:
`Signal Line = EMA9 for the ACD Line`
- The histogram (Histogram):
- It shows the difference between the blue line and the red line.
- If the histogram is above zero → the trend is up.
- If it is below zero → the trend is down.
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2. How to understand MACD signals?
A. Crossover:
- Buy signal 🟢!
- When the blue line (MACD) crosses the red line (Signal) upwards.
- Meaning: momentum has started to shift in favor of buyers.
- Sell signal 🔴:
- When the red line (Signal) crosses the blue line (MACD) upwards.
- Meaning: momentum has started to weaken, and the selling time is closer.
B. Divergence:
- Bullish Divergence:
- When the price drops to a new low, but the MACD is making a higher low
- Signal: the price might rise soon.
- Bearish Divergence:
- When the price reaches a new peak, but the MACD is making a lower peak
- Signal: the price might drop soon.
C. Zero Line:**
- If the MACD is above zero → the overall trend is up
- If it is below zero → the overall trend is down
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3. What are the blue and red charts.....?
- DIF (the blue line)
- DEA (the red line)
-MACD (the histogram): is the difference between (DIF - DEA)
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5. Brutal tips for using the MACD:
1. Combine it with other indicators: like RSI or support/resistance levels.
2. Use it in trending markets: not in sideways markets (range-bound).
3. Don't rush: wait for confirmation of the signal with a **closing candle** or high trading volume.
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5. Summary:
- The MACD is a strong indicator for measuring momentum, but it's not guaranteed 100%.
- Always study the market as a whole, and use capital management!
