How to Use the MACD Indicator | Day Trading


hi everybody this is marina the trader
chick and today’s quick lesson is an indicator called the mac these better
known as moving average Convergence divergence it’s definitely a mouthful however
you’ll never hear anybody actually say the full name of it you literally just
say it Maggie’s kind of like McDonald’s Mickey’s it’s one of the most used
indicators for trading and even for investing a lot of people use it for
longer terms but for the shorter term trading which is intraday especially for
us in today which is during one day the mac d’s which is right here will be one
of your absolute most important indicators to use let me change this
around and make it more a rectangle ok so what are the maxies basically it
shows the strength in the market for instance right here it is very it has gone up right that it
is moving upwards and it’s relatively strong ok so you have strong bars until it
starts to slow down right here and this is where you can see what the max these
are telling us right here it looks like it’s going up and it’s
going up right here however the price is telling me it’s
continuing up yet the Maccabees is showing me divergence and it’s starting
to go down and right here look what happens it starts to head down
and eventually we start to head down so this basically it is all potential
you can never say this is the holy grail of trading is potential but when you’re
starting to see that the magazines are starting to head down while the price
action is going up chances are that this strong up is going
to start to slow down and a new down is going to start downtrend this is an uptrend this is a Down trend
for day trading small trends are crucial because we have such a small risk
management on the line so anything that goes to deep could help
us out and we will lose money so it is really important to start to
notice these things right here so you focus on the strength of the mac d’s and the strength of the price action the
best is to see when they are together another indication of the manatees is
right here at this dash line this is the zero line whenever you are
up above the zero line strong like right here you are really
high up here you know set one hand and a half times more than the zero line that
shows strength that is going up the same as here when it’s going down you’re almost at point eight far away
from the zero line so that show strength going down right here you can see that
the price action is really slowing down and even more so and it’s actually
hanging out around the zero line so that shows that there’s very little strength
in the market and this is the best time to literally just sit it out and wait
for you to see what happens

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