The Best Times to Use the MACD Indicator

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.

Comments

beamerUSA says:

would be good if we could see CHARTS then ur well groomed face

KpxUrz5745 says:

Quite a poor explanation of this useful indicator, and especially poor at when to use it.

Teboh Ewane says:

My MACD is not showing the two moving averages, can someone help??

Jamie Kelley says:

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?

Neeraj Suri says:

well explained !!

shane Albertson says:

It doesn’t help

aGr3atD4y says:

THANKS! this was really well made!

christopher gillig says:

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..

HD ARTWORK says:

waste of time

Soroush Falahati says:

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.

anthony gibbs says:

Dave Jones you’re awesome!!

Benedicto Lapuz says:

WE NO THAT CRYPTO IS VERY VOLATILE SO WHAT IS THE BEST TIME FRAME TO BE USE IN TRADING?

Андрей Панасенко says:

Useful vid! Which platform are you using in your video?

jojo says:

they did surgery on a grape

Moin Sayed says:

Nothing special u show

Daniel Martin says:

The best indicator to used is RTT

Jemilu Tr says:

Wow Thanks For Unleashing This Goldmine Strategy

XPandMind says:

Excellent.

Crypto Minded says:

if youre confused about crypto…you just need the right motivation..

Rabin mushmush says:

Thank you very much, Mr Jones, for sharing your knowledge.I would appreciate the same for RSI indicator.

Zachary Maurer says:

Which platform is this??

A5r khairun says:

How to use EMA?

MoneyManFernando says:

Good video. Do you ever do videos like this about U.S. stocks such as Amazon or Apple or any other big American companies ??

Gez Monder says:

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.

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