downtrend

Power of Forex MACD Indicator

After trading for years, I find out that the forex macd indicator is one of the most reliable forex indicators available. In fact, this indicator is used in all my trading strategies and this alone tells you the importance of this indicator to me. In this post, I will like to share with you how […]

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    After trading for years, I find out that the forex macd indicator is one of the most reliable forex indicators available. In fact, this indicator is used in all my trading strategies and this alone tells you the importance of this indicator to me.

    In this post, I will like to share with you how to use the forex macd indicator in your trading so that you can profit with it.

    1) As a Trend Identifier – Being able to tell the trend of the market is very important for any trader. Therefore I usually use the MACD indicator to tell the trend and this is how you do it.

    When the MACD indicator is below the zero line, it is a sign that the trend at the moment is DOWN.

    downtrend

    When the MACD indicator is above the zero line, it is a sign that the trend at the moment is UP.

    Up trend

    2) As a Divergence Identifier – If you have been trading forex for sometime, you should have heard of MACD divergence. Let me spend sometime to tell you what is divergence.

    When you see the market making higher high but the macd indicator is making lower high, it is a signal of negative divergence. What you should do is to enter a SHORT trade as negative divergence is a sign that the price is going to move down.

    negative divergence

    When you see the market making lower low but the macd indicator is making higher low, it is a signal of positive divergence. What you should do is to enter a LONG trade as positive divergence usually means that the price is going to move up.

    positive divergence

    3) As an Entry and Exit Signal – The macd indicator also serves as a great entry and exit signal. When you are going to enter a LONG trade, you should make sure that the macd histogram has flipped up.

    Bullish

    When you are going to enter a SHORT trade, you should make sure that the macd histogram has flipped down.

    Bearish

    4) As a Fakeout Identifier – The number one killer in trading is the occurrence of fake out. Fake outs are false movement created by the market to lure traders into getting a trade. However I am unable to tell you more about this as it will be unfair for those traders who has purchased my forex strategy pro course.

    In the course, I actually teach you how to avoid getting into fakeout trade using the macd indicator.

    I hope that you find this tutorial useful for you and I wish you all the best in your trading.

    If you are interested to find out how I modified the Stochastic and MACD indicator for better trading results, you can find out from the link below.

    Click Here To Find Out More

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