How to Use the MACD Indicator in 2020 Advanced Guide

Forex Trading. What separates the Losers from the winners.

My name is Tom Burgoine and I am an engineer by trade however love Forex trading and have taken it up as a hobby. I have spent the last 5 years studying Forex and have had help from supposed traders teaching me the fundamentals of Forex trading. This was good as I got to know the basics and how all of the indicators worked and the terminology used etc. Once all of this was learnt, I then moved down the road of starting to trade. Straight away, I was losing money however the buzz of doing this gripped me and allowed me to keep pumping money in. I looked at various strategies given to me and none of them worked. I studied Elliot wave and although I have to agree with the markets moving in 5 and 3 waves, it became very hard to count the waves and at some points felt very contradictive of what I had been taught. It was almost like every rule, had an exception (Is it really a rule). After 3.5 grueling years of losing 40K, I then took a step back and re-evaluated. I asked myself what were the issues surrounding my losing? I know that my mentality was a problem. I was over trading and getting greedy when the wins came in. Secondly and most importantly, I realised that all of the teachings, lessons on indications, and other advice (Although welcomed and useful) was teaching me about reactive circumstances. The Indicators were reacting to market movement which meant by the time I jumped onto the trade, I had missed a bulk.
Being an engineering manager, I always try to find the Logic in things and like to know how they work quite in depth. I know, geekish, however, my mind works only in logic. I decided to try and find a way to be proactive in seeing the market turn rather than reactive and started looking into different tools and indicators. Finally in logically looking at how the market moves, I found the answer.
Market prices move with the pressure of the buyers and sellers purchasing or selling there currencies. I needed to find a way of knowing when the pressure of a market going up (Bullish) or the pressure of a market going down (Bearish) was tailing off, eventually resulting in a reverse. I looked at the indicators and found that momentum does this. I needed a second Indicator as well just to crosscheck what I was being told. I looked at the formula of the MACD indicator and thought the Histogram from the MACD indicator was very good. The moving average slapped on the top however was of no use. I then configured the MACD indicator to only show the histogram. So my Indicators were the momentum (Set to 12) and the Histogram from the MACD.
I traded on the daily as I wanted medium to long term trades. This prevented me and my mind from over-trading. I would look at the daily and would look at the direction of the price movement and the look at the pressure moving it. If the price and pressure (Indicated by the momentum and the histogram) were moving in the same direction then it was all good. The minute I saw the momentum and the Histogram starting to turn while the price still went in the same direction gave me my proactive indication that the market was about to turn. This is when I implemented my strategy. I then went to the 4 hr time frame and waited for the same thing to happen which then gave me an even tighter and closer proactive indication that the market was about to turn. once the 4 hr time frame gave me the same signal, I then moved to the 1 hourly until I received the same signal. I then got to the point of knowing within a couple of hours when the market was going to turn. I needed something extra that would allow me to enter my trade rather than trying to guess which hour was going to be the turning point. I then looked into a third indicator. Stochastics. Stochastics allowed me to see when the market was over bought or over sold. I waited until all of my Signals were in place and then waited for the stochastic to go over bought or over sold. I then entered on the hourly. This has turned my trading around. It has made me slow down my trading with consistent wins and mentally has put me in a better place. I have set up a you tube channel FX Logic, where I will be going through potential trades weekly using this method. I have a introductory video on there as well which talks you through the methodology discussed here with the charts right in front of you. There is no catch just a engineer trying to share his success. Subscribe to my channel and go through the process of growing your account with the community.
submitted by ForexLogic to u/ForexLogic [link] [comments]

MACD Forex Swing Trading Strategy MACD Indicator Secrets: 3 Powerful Strategies to Profit in ... Best MACD setting - YouTube MACD Settings - YouTube My FAVOURITE MACD Strategy - Forex 101 The Secret Code of Successful MACD Trading (Forex & Stock ... MACD Indicator MT4 Default Setup Explained - YouTube

The values of 12, 26 and 9 are the typical settings used with the MACD, though other values can be substituted depending on your trading style and goals. Interpretation. As its name implies, the MACD is all about the convergence and divergence of the two moving averages. Convergence occurs when the moving averages move towards each other. Divergence occurs when the moving averages move away ... These settings of the MACD indicator for the M1 timeframe can be applied either separately or together if the trading strategy involves the use of several charts at once. The first option of parameters is the most sensitive to price fluctuations, and the last one is the least sensitive. Please note that all three types of settings do not involve the flattening of the signal line. Standard indicator settings for MACD (12, 26, 9) are used in many trading systems, and these are the setting that MACD developer Gerald Appel has found to be the most suitable for both faster and slower moving markets. In order to get a more responsive and faster performance from MACD one can can experiment with lowering MACD settings to, for example, MACD (6, 12, 5), MACD (7, 10, 5), MACD (5 ... The best MACD settings for intraday trading is default settings MACD parameters EMA 12, EMA 26, EMA 9 based on research on M30 minute chart. The research was done on 9 MACD settings combinations. Signal Line Crossover. The signal line crossover of MACD shows that the acceleration direction is undergoing change. The average velocity of the MACD line when it crosses zero indicates ... Moving Average Convergence/Divergence - MACD: Beschreibung, Einstellung und Anwendung. Technische Indikatoren des Forex-Marktes, Arte der... The basic purpose of the MACD Forex indicator is to discover new trends and to identify the end of the current trends. There are different ways of gauging the signals generated by MACD. Each trader also uses his own unique settings and methods around this trading indicator. It is made up of two exponential moving averages and a histogram. To calculate the MACD, we use the following formula ... Forex-Services; Für Partner; Promo; Forex-Community; InstaForex ist der offizielle Partner von Dragon Raсing . Technische Indikatoren. Handelsplattform MetaTrader downloaden. Handelsplattform MetaTrader downloaden. MACD indicator formula and settings: Beschreibung, Einstellung und Anwendung. Der technische Indikator für das Zusammen-/Auseinanderlaufen des gleitenden Durchschnitts (Moving ... FOREX 1 MIN Scalping Trading Tricks By The Most Successful Forex Trader SMA-EMA Cobra Forex Bitcoin Trading System ... Most of The Time it Doesn’t Give False Signals 2 MACD Effortless Forex Swing Trading System and Strategy That Work 8 BEST Tips and Tricks for Successful Forex Trading . Recommended Article: rading SCALPING on the Daily Chart. This entry was posted in Best Forex Trading ... Typically, when traders talk about the formula for MACD, they think about the formula for the MACD line: As you can see, it’s the difference between a 12-period EMA and a 26-period EMA. You may notice that the two EMAs aren’t featured on the indicator; instead, they are given as parameters when you apply the MACD to your chart. For example, if you were to see “12, 26, 9” as the MACD parameters (which is usually the default setting for most charting software), this is how you would interpret it: The 12 represents the previous 12 bars of the faster moving average.; The 26 represents the previous 26 bars of the slower moving average.; The 9 represents the previous 9 bars of the difference between the two moving ...

[index] [17952] [29165] [13799] [19027] [13441] [575] [17944] [22644] [29352] [10280]

MACD Forex Swing Trading Strategy

The MACD is one of the most popular and broadly used trend-following indicators for Forex and stock trading. In this video you’ll discover: • what is MACD in... Come check out the best MACD strategy. Super simple to implement :) Here's the link to my free course This is a forex trading strategy although you can probably also use it on other markets. We have MACD setup, fast length setup at 12, slow length set at 26 and smoothing set to 9. The theory of ... MACD indicator a.k.a Moving Average Convergence Divergence is one of the most widely used indicators in Forex trading.We all know the 2 line MACD indicator. ... Here are the best settings for MACD Discover how MACD indicator can help you "predict" market turning points, increase your winning rate, and identify high probability breakout trades. ** FREE ... Advanced techniques for trading futures, forex, commodities and options. Eleven lessons you can use immediately to impro...