Successful Trading With MACD
MACD GUIDE YOU TO FIND A TREND CHANGE
To work in an uncertain market is most difficult task that one needs to understand, But to predict the trend can be easy with the help of indicator name of that indicator is MACD (Moving Average Conversion Diversion)
What is MACD?
MACD is one of the most popular indicator which is used by an investor as well as trader, this indicator reflect the momentum and shows relation between two moving average, and so it is helpful to understand the trend , even it helps to predict entry and exit point
It mainly has two lines one is MACD line and the other is Signal line, with that one can even analysis histogram that is zero MACD. When Histogram is above zero level it is positive and vice-versa
Commonly used parameters of MACD is 12,26,9 days over here ema 12 is fastest moving average, 26 is slowest and 9
One can even use 5, 13, 5 for short rely
USE MACD IN TRADING
When there is change in trend the fastest moving average will react first, and will cross slow moving average or if you find macd line crossing signalline and start travelling upward it is said as positive crossover, and that means that now the script/index will be in a positive trend.
Lets see and example with the help of a script
In icici bank there is a
It is difficult to check all charts on regular basis for finding such kind of opportunity in market. Solution for this, who wants to grab this kind of opportunity, we can use Query Builder ( stock scanner tool) which is available in Smart Trader+ technical analysis software. It is simple to make such query for finding this type of MACD crossing in any stock.
Below is query example to find MACD bullish and bearish crossover:
If you want to find MACD cross above histogram we can use this query.
Hear is Query Builder screen along with query and results:
The MACD indicator is special because it brings together momentum and trend in one indicator. This unique blend of trend and momentum can be applied to daily, weekly or monthly charts.
- Anand Singh Gaur
- Sunil Kothari