MACD - Trade the Indicator Like a Pro

The speaker covers three key techniques used by traders when trading the MACD, or moving average convergence divergence indicator.  The speaker suggests that when the MACD is hovering around 0, it indicates a range bound market. 

He discusses MACD divergences, meaning, higher prices but lower MACD readings.  This precludes a move lower and caution is warranted when you notice this pattern developing on the MACD.  The move down may not begin immediately but you need to look for other clues to price breakdowns.

He then moves on to MACD crossovers. It is not recommended to trade this setup on its own, but it can provide additional confirmation to other signals.  There will most likely be more bad signals than good signals so it is advisable to use other indicators to confirm the signal.


Tim Ord
Ord Oracle

Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide...

Tradingsim.com
Day Trading Simulator

Tradingsim.com provides the ability to simulate day trading 24 hours a day from anywhere in the world. TradingSim provides tick by tick data for...

Send this article to a friend.

Enter multiple addresses on separate lines or separate them with commas.