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Centered Oscillators

Using the Moving Average Convergence Divergence (MACD)MACD – What it is The Moving Average Convergence Divergence (MACD) is the momentum indicator that shows the relationship between two different moving averages: 1. The 12 period exponential moving average – On Tradingview it is the Fast Length. 2. The 26 periods exponential moving average –On Tradingview it is the Slow Length. The MACD line is calculated by subtracting the 26 period EMA from the 12 period EMA. The Signal line is the 9 period exponential moving average. These two lines are then plotted on top of each other. These are the two lines you see when you turn on the MACD indicator. Additionally, there is a histogram that shows the distance between the two lines. Larger bars tell us that the MACD and Signal are further apart. When it comes to candles, size matters. The larger the candle the more momentum the trend has. The histogram will turn green when the MACD line is above 0 (bullish) and it will turn red when the MACD line is below 0 (bearish). Very bearish momentum is shown above. Photo was taken May 23, 2021. How to use the MACD The most important thing to know about the MACD is how to read the relationship between the two lines. I’ve found that the best timeframe to use the MACD with is daily. This is because the MACD is a lagging indicator and using daily data prevents a lot (not all) of false buy and sell signals. These signals are: • When the MACD line crosses above the signal line it is a buy signal • When the MACD line crosses below the signal line it is a sell signal Additionally, it is best to use the MACD in a trending market; a market with a clearly defined up or down trend. Using the MACD with trend lines is a very powerful combination. The reason for this is that if the market is moving sideways, you can see small fluctuations where the MACD and Signal Line cross but the price does not really go anywhere. These are false breakouts. Therefore, these signals are not automatic buys and sells. There are ways of confirming the indications from the MACD chart. One way is a strategy that uses the RSI and MACD together (which is beyond the scope of this text, but I will discuss in my next article). Another way is to use the MACD with the current trend. So, if you are in an uptrend and then you see a bullish cross, then this is confirmation that you are likely to go higher. The same is true in reverse. Also, please note that the cross over happens well after the price either stabilizes or rises. Again, this is because the MACD is a lagging indicator. Leading Indicator? Since the MACD and Signal lines are lagging indicators is there something that can be used in a predictive way? Some traders use the histogram as a way to predict when a reversal will occur. Since the MACD is a momentum indicator it can show us when sell pressure is alleviating. Meaning it might be a good time to buy. This doesn’t always work of course, but with good risk management (stop losses) you can often get into a position well before its breakout. Conversely, it can show you when your long position is running out of steam and can warn you when to get out. MACD Divergence Another useful way to use the MACD is to spot divergences. A bullish divergence, very similar to the RSI, is when the short-term price trend is going down but, the MACD is going up. Bearish divergence, also very similar to the RSI, is when the price trend is going up but, the MACD is going down. Trading this way is sometimes not a good idea because you are trading against the trend. Please practice good risk management if you are trading reversals. Also, notice the buy signal right before the sell signal that is circled. I really want to hammer home the point that the signals are not automatic buys and sells. Price action is a great way to confirm the reversal (to the up or down side) of a trend. Because simply spotting a divergence does not guarantee the price will follow. Final thoughts As you can see there are different ways of successfully using the MACD. I hope I’ve made a few of these ways clear in this beginner guide. Please let me know if you have any questions and if you like it, please hit the thumbs up and be sure to follow for more. Links to my Fibonacci Retracement and RSI guides are below. Thanks for reading!
Education
by zsamochin
126
BTCUSD Daily Fib extensions. CCI tlb. Getting ahead of myselfHead and Shoulders target marked on chart is below the fib retracement tagged last week. 13 CCI is turning up but it may be temporary. For a real upmove, After any divergence, normally we need a retest of low, then a move of 13 CCI above -100. However, should we get a lower new low, we have to start over looking for Longsm looking first for divergence in next price/time cycle, then a retet of low, then a crossing of 13 CCI up through -100. Or, for an easier but solid Long signal, When I see 100 CCI turn and get above -100, that will be a clear signal for upmove. This post isn't ment to be predictive, but for helping to think of just a few of many possibilities ahead, to help stay observant and nimble
BITSTAMP:BTCUSD
by nicker
LTC back on the upswing to a new ATHIt has been a rocky week for LTC as it has moved down a good 30% from reaching its ATH. This is to be expected though in the crypto markets and nothing to really worry about considering we are still in a bull market. LTC has been trading inside a nice upward moving channel since October of last year all while mostly staying above the 50 day MA. The RSI has been making higher lows and the volume has been, on average, a lot higher since the end of March. Barring some FUD Elon tweets that could cause a temporary price dip, or a major BTC move, I see don't see a lot of reasons that LTC will not continue to rise based on the cart. I would like to see the MACD cross above the signal line on the daily chart. This is really the only bearish sign on this chart. Perhaps even this is going to change soon because, at the time of writing, the histogram seems to have turned towards increasing. This might not be the fasted play ever, but I think it is reasonable to say that LTC will be above its old ATH and at $450 in the next couple of weeks. _______________________________________________________ Thank you for reading, please like, follow, and comment! And don't forget to checkout my indicator guides below. More coming soon! Trade at your own risk.
COINBASE:LTCUSDLong
by zsamochin
2
APD repeating yearly pattern, golden cross into bull run??Hi. In this 1D chart I've plotted out the price increase of 2019 and 2020, marked their golden crosses in the first halves of the year and placed the resistance line from 2020 that the current golden cross could indicate will result in the price breaking through and rising past it during this year. Keep in mind that the fundamentals of APD are also very good. Thank you. Please if you have any thoughts or comments do leave them below and I would gladly discuss or adjust my interpretations and methods. This does not constitute financial advice. Any prices, even if explicitly stated, are presented with intent to discuss the symbol and potential interpretations. Any trades shown or mentioned are examples and neither recommendations or mandates.
NYSE:APDLong
by Kabeldon
EGLD up to $300EGLD has been trading in the same channel since February. Good new for us is that this is an ascending channel. Additionally we have testing the middle of the channel multiple times over the last three months and each time we have been rejected. This is not that big of a deal since a move back to the middle of the channel from our current price is a 60% increase in ELGD's price. Other bullish signals include the MACD crossing the signal line, as well as the fact that the price has stayed over the 50 day MA for the last week. I would however like to see more volume. A stop loss would be if EGLD closes the day under the channel Have fun, trade at your own risk.
Long
by zsamochin
Sell scalpPresented is a 1 hr chart sell analysis We currently see an immediate pivot at key resistance 0.70900. If this bar closes out with little retracement we have first confirmation of a reversal. We can rely on indicators to detect pullbacks. We are seeing RSI trying to breach 50 while SRSI is making its reversal point. MACD and SIGNAL are setting up for a cross back down. We can enter if this bar closes below 0.70600. Take profit at next key support of 0.70200. Please comment with thoughts and ideas. Thank you.
Short
by Pika7993
HNT about to break its ATHHNT has been trading in the same upward channel for all of 2021. It bounced off its lower trend line a week ago and has recovered. It is currently meeting resistance at its previous ATH daily close at $18.50. I expect it to close well above this today and to continue its breakout. MACD is looking good and it seems that HNT is going to $30 in the next couple of weeks. If everything in the market stays bullish over May my price target is at $42; a price that is well within the channel after mid-May. Stop loss should be set to a daily close under the trend line. 3:1 risk/reward if it goes to $30 or under $15 (in the very short term). Have fun, trade at your own risk.
HLong
by zsamochin
BTC will rise up. it will be more than $ 55k in next few daysEach time Bitcoin had a sharp downtrend, it applied a tighter uptrend. Also, long bearish shadows indicate that the price trend will soon rise. The shortening of the MACD oscillator also indicates a sharp uptrend. The Ichimoku cloud will also turn red in the next day or two. In the red cloud there will be a rising trend. I hope that in the next few days, the price of bitcoin will rise to 55 thousand dollars and even more.
Long
by Official3Arz
Beware: Bitcoin show weakness!!! The trend go to reversalAt the moment, looking in Daily timeframe, Bitcoin it's turn bearish in H12 timeframe, but if you look the smal timeframe like H4, it's turn bearish and we see an simetric triangle, but looking more in H12 timeframe, this candlestick it's a bearish signal. Right now, I will going to sell my altcoins and Bitcoin as I know htat if Bitcoin drop, Ethereum, Chainlink, Cardano, XRP, EOS, Tezos and Litecoin drop too. s3.tradingview.com In Daily timeframe it's still bearish sentiment as MACD show higher low in the indicator, as we see in H12 timeframe too. So, I have a forecast that Bitcoin can to go back to $45,000 USD. The $45,000 USD level it's very important to support by long term, as Bitcoin continue up. This week, this movement was surprise for us as Bitcoin doesn't have success to make support above of $60,000 USD, maybe I thinking that was that Bitcoin it's overbought, and correction it's neccesary for the health asset. s3.tradingview.com This it's the panoramic in 3 Daily timeframe s3.tradingview.com And looking the weekly timeframe, it's look bearish, maybe in these weeks, Bitcoin show a consolidation during the past weeks. And then, I hope this movement to $45,000 USD level. Guys, altcoins and Bitcoin may to reversal the trend, be carefull to trade.
COINBASE:BTCUSDShort
by harisonhbn9718
8