⚡ MACD — A trend-tracking beast!
Want to ride the trend and discover momentum changes early? MACD reveals everything.
👉 Learn how to detect reversals, trend strength, and hidden divergence professionally
Today's topic: MACD — The secret to reading trend and momentum simultaneously!
🧠 What is the MACD indicator?
MACD = the difference between exponential moving averages
It shows you when the trend starts, weakens, or reverses.
Consists of 3 main elements:
MACD Line = difference between fast EMA and slow EMA
Signal line = 9 candle average of the MACD line
Histogram = the difference between MACD and signal line (as bars)
🔥 Why is MACD so powerful?
Confirms the trend direction
Reveals momentum strength
Detects divergences (early reversal signals)
Excellent in clearly trending markets
🚀 How to use MACD like a pro:
✅ 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. Detecting 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 bars increase in size = momentum is increasing
If the bars shrink = 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
❌ Ignore trading volume — confirmation is necessary
❌ Reacting to every crossover without understanding the context
Follow me now to learn how this advanced indicator detects explosive entry opportunities from the tightest ranges!