This week, by popular demand, David decided to cover the Moving Average Convergence Divergence indicator, more commonly known as MACD. It’s one of the oscillators that are quite popular with traders and being a combination of several variables, it’s considered as a more precise tool than many others.
David takes us through the theory behind it and the way it’s calculated before showing us several textbook examples that illustrate it in close to perfect conditions. As usual he then goes on to an example on a real chart that frequently poses different challenges that traders need to understand and overcome in order to find the exact moment when they should open and close a trade.
Let us know in the comments if you liked the video and also if you have any questions about the MACD. Tell us what you want to see next.
At Trading 212 we provide an execution only service. This video should not be construed as investment advice. Investments can fall and rise. Capital at risk. CFDs are higher risk because of leverage.
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would be good if we could see CHARTS then ur well groomed face
Quite a poor explanation of this useful indicator, and especially poor at when to use it.
My MACD is not showing the two moving averages, can someone help??
Hi, I enjoyed your explanation…however, I still have a question. What is the correlation between the convergence/divergence lines and the histogram’s 0 line?
well explained !!
It doesn’t help
THANKS! this was really well made!
This isn’t have MACD should be used to generate signals… Crossovers to the upside above zero are buys, crossovers to downside below zero are sells.. The only Decent buy was the Crossover to the upside above zero as example..
waste of time
MACD is a lagging indicator. Therefore the places it crosses are irrelevant by themselves. The important thing is the direction of change in the difference between the lines (the change of histogram) and even then; it is next to useless.
Dave Jones you’re awesome!!
WE NO THAT CRYPTO IS VERY VOLATILE SO WHAT IS THE BEST TIME FRAME TO BE USE IN TRADING?
Useful vid! Which platform are you using in your video?
they did surgery on a grape
Nothing special u show
The best indicator to used is RTT
Wow Thanks For Unleashing This Goldmine Strategy
Excellent.
if youre confused about crypto…you just need the right motivation..
Thank you very much, Mr Jones, for sharing your knowledge.I would appreciate the same for RSI indicator.
Which platform is this??
How to use EMA?
Good video. Do you ever do videos like this about U.S. stocks such as Amazon or Apple or any other big American companies ??
I’ve been backtesting MACD recently and on the daily it seems particularly reliable. Certainly not catching bottoms and tops but for an amateur to take every buy and sell signal the probability of winning over time is very good.