Continuing our ongoing discussion on indicators we take a look at the MACD, whether you include indicators in your trading or not this is a must watch video on one of the widest used indicators out there!
As a general rule a trader should always back-test a strategy before trading real money in live markets. If you are a trader that looks to join a trend once established then adding a trend following indicator like a MACD can be useful. However, we need to use caution when approaching the use of any indicator in our trading as they are a lagging tool. Short for moving average convergence/divergence, MACD is a trading indicator used in technical analysis of stock prices, created by Gerald Appel in the late 1970s. It is designed to reveal changes in the strength, direction, momentum, and duration of a trend in a stock's price. Join us as we once again take an in-depth look at one of the most popular indicators available to traders today!
⏳ Outline:
0:00 Intro
0:58 Make sure you back test every and all ideas!
3:13 How to use divergences and typical settings for the MACD
4:47 An in-depth look at the mechanics of the MACD
5:55 Trend following indicators are best paired with index type instruments
6:35 News is not the MACD's friend
9:35 Summary

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