MACD Divergence Strategy
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- Опубліковано 27 вер 2024
- MACD divergence strategy doesn't work well unless you watch it on multiple time intervals. go.topdogtradi...
Diveregences on the MACD and other indicators are very popular. But they don't work as well as they used to. Here's a strategy to improve your success rate.
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Barry Burns
Top Dog Trading
TopDogTrading.com
Facebook: / topdogtrading
Get the Free Trade Strategy: “The Rubber Band Trade”:
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Watch the related video: "Stochastic Momentum Index Indicator for Safe Trade Entries."
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IN addition to the double time frame analysis, it's also useful to observe the structure of the daily MACD, i.e. the second divergence occurred at a lower MACD high than the first one. It's been my experience that observing trend reversal structure on any indicator is very reliable and also provides an answer to your topic.
I’m in your course 1, course 2, trading psychology, bonus videos, freedom trading, Holy grail video collection. Very good stuff so far. Great studies, great teaching method in both reading, having it right in your hand then video format having it right on my devices. I love the teaching method and your strategies.!!!
Thank you so much for your kind words and for being a part of all my courses! I'm thrilled to hear that you are finding the content valuable.
@@TopDogTrading very excited to start live trading I have been taking a break while studying, although I do keep my live charts open to see when I spot a mini divergence on the Stochastic, or anything else etc... So my confidence is going up I’m almost ready to jump in. 👍🏼
Fact: Top Dog is The Alpha Dog when it comes to understanding trading systems.
Thank you Sirrah.
Topdog trading is a time tested trading education and works in real life .many thanks to mr barry for imparting us highly experience education of macd divergences convergences and to turn market in our favour.
best regards.
Glad to be of service Gautam.
1) thank for no long promotion introduction and getting straight to the point
2) 3 minutes in I learned more in this video then any other on UA-cam
3) like and sub
4) thank you 🙏🏾
You're more than welcome and thank you for the kind words. I appreciate your appreciation!!!
Double time frame to double confirm the divergence, very well explained. I will try to nail the turning point once there are triple or more divergences.
Thank you, I'm glad you found the lesson helpful.
One of the best MACD explanation. Thank you!
Glad it was helpful Mia.
Very clear and concise - have just found your videos and have viewed a fair few in the last couple of days. Many thanks for your hard work and help to others - much appreciated. 👍
You're more than welcome Andy.
Thanks. Valuable info on identifyinf the correct signal to take a position. MACD should Cross Signal
The second divergence, I call it a wide divergence which seem to work better....but there is a subtle price action clue which I find dependable. Notice the top small green bar close, followed by the open of the red bar...I call this a close open gap. Traders get hung up on demanding a window gap...not necessary. From the green close, it gapped down to the red open...bearish indicator. I call this a close open gap. You might say, ah, they appear regularly, yea, but this one appears at a divergence and at the top of a 4 th leg....I absolutely would short at around 75 percent down level of the large red bar....placing my stop at the top of the large red bar. Finally, the small green bar is relatively far from both MAs...reversion to the mean will likely put some downward pressure at the green bar...and what happens next....a gap down.
Thank you for sharing Walter!
i watched many videos of the macd trying to understand what is what, no one has explained it so well, ,,, thank you.
Thank you, glad I could help.
Thank you for this one Barry! I'm going to watch this one a number of times, as it is a real gem.
You're very welcome Tim. Glad you liked it.
Awesome idea, had a stock I own with a graph looking EXACTLY like the one in your video above and the divergence on the daily charts was worrying me,. But I followed your technique and checked on the weekly and Lo and behold, no divergence or crossover there- so feeling a lot more comfortable holding on to the stock. Thank you !
That's great Dwight. Glad I could help!
a 2k lesson would not teach you that much compare to what this person thought us in a single video. God bless you sir in both worlds. I see your pure heart You do not want money for this. you are not greedy either. people should stop buying fake course instead should listen to this person with real knowledge
Thank you Hanzalah, much appreciated!
Thank you so much appreciate your work my accuracy increased alot.
Glad it helped!
Dr. Berry, Thanks, another informative, easy to understand, webinar.
Thanks, again,
Bob Allen
Thank you friends
You're very welcome Indika.
Very concise explanation, thank you, Sir 🙏 I subscribe to your channel from now on😊
Awesome, thank you Menu
I wasn't able to follow which lines and which charts he was referring to during his explanation. A big round yellow cursor to show what you're referring to would be a huge help. I'll watch the video a few dozen more times and I'm sure I'll get it. :)
Thank you for the helpful suggestion. Much appreciated.
Appreciate your work into this but Could not conclude anything.
Very clear, hope after 8 months now you might have concluded.
Been 1 year, this was very clear.
Yeah, stochastics are voodoo. They make amazing vidoes ex post facto, but you very rarely see anyone make these videos with an actual prediction. I wonder why. ;)
Real information.. Thanks a lot sir
Thank you, I'm glad you found it so helpful.
I definitely get what you're saying. But in the way that you're saying it one might as well just trade the higher time frames and leave the lower time frames alone then. Possibly just using lower time frames for entrances only 🤷. Also it amazes me how many traders disagree with each other and each one of them claims that their way is the right way. You say that the long-term trend is already too late to enter But others say that's what you want to look for 🤷. this is why as a trader I am very much against giving opinion and only technical analysis which is just statistics spread out over time. Thank you for the video 👍👍
I understand that can be confusing. I don't believe there is one "right way" to trade. I have many friends who are successful who use different methods.
Change the 9 to 3
thanks for the time you and quality of your videos I have been watching for over two years . I first started out with penny stocks and OTC stocks , this indicators don't work with otc stocks but Still I have learned a lot.
Logical and easy to understand... Will incorporate this in my trading... What I like about your channel is its bang on to the topic ( straight to the examples).
Thank you for the kind words, I appreciate that very much!
Thanks Mr Burns
You're more than welcome.
Basically, MACD should be used on higher time frames to cut out false signals
Thank you for your contribution to the discussion.
Thank you Barry
Yes it is Joe!
there was a confluence of MACD on daily at 05/17/2016 and weekly cross over. But the weekly candle contains 7 days, so the cross over could have happened after 05/17/2016. By then it would have been too late for entry.
Yes, that's what you have to be careful of - always remember that moving average (and even MACD is built from moving averages) are lagging.
This is good stuff!!
Thank you, glad you found it helpful.
Very helpful thanks. I will be watching more of your content for sure.
Glad it was helpful Papa.
For those looking for a TradingView script to combine MACD in multi timeframes, here is one I developed: www.tradingview.com/script/AJSNh12u-Combing-in-MACD-and-MTF/
Thanks Barry
You're very welcome Dan.
Very clear n well explained....to the point....thanks a ton
You're very welcome Nancy
The video showed when to exit, but how do I know when to enter???
you should look for buy signals above the MACD zero line for bigger moves also the opposite below the zero line
Great lecture. Worth every minute. Thanks
You're very welcome Hussein.
Great work indeed. If you can show it sometime on the live charts.
good explanation sir
Thanks and you're welcome
I love your videos. The concepts and principles are laid out in a very easy and understandable manner. Thank you for simplifying this. Can you please do a video on the VWAP.
Yes, I already have. You can check it out here: ua-cam.com/video/_08bjfrZjHQ/v-deo.html
Thank you for the video. I will start using it today on my sim account.
Smart to start trading it on a sim account first.
Thank you very much for such a nice knowledge sharing video.
Glad it was helpful!
Very helpful, thanks Barry!
Glad it was helpful Chris.
As expected pure trading strategy GENIUS! Thank you Barry aka TopDog Trading!
Thanks Rick. Wow, that's quite a compliment! I'll do my best to live up to it.
Very enlightening. Thanks!
Glad it was helpful Nick
I'm quite new to your content but am finding it very useful in developing a structured approach to succesful trading. Thanks!
Thank you so much Kulile. I'm glad my tutorials are helpful for you.
clearly explained. easy to understand. thx
THANK YOU. IT IS GOOD LEARNING EXERCISE. AND INFORMATIVE
You're more than welcome
Thanks for a clear explanation Barry. I just noticed when you refer to the macd cross on the higher tf, it already accounted for 5 (daily bars) compared to the daily timeframe which only accounts for that day alone (first cross on daily tf). So youll never get that cross confirmation on the higher tf unless the down impulse had been completed in which you are already late to enter short. So i guess youll just enter the trade at first macd cross on daily and just anticipate the higher tf to cross later on?
Thank you Sir, well explained
You're very welcome
Maybe I've been distracted... I didn't get the secret sauce here. Is it to look for a confirmation of a higher time frame?
Very well explained! Like this video!
Thank you so much Joy.
Thanks
Welcome
Nice and simple explanation. Good video
Very good information and strategy. There is a commercial 'system' based just on this concept and here it is for free. Mucho grazio...
You're welcome Wayne. I think if you go through all my UA-cam videos you'll find a lot of free lessons that others charge for. I appreciate you pointing that out.
Can we use any one combination indicator Adx with macd.
You might be able to use those as part of a complete trading method - I haven't tried that.
Simple, but effective. Thanks.
You're more than welcome Lorenzo.
How did that not work? What % gain are you looking for? Looks like entry trigger was around 118 and the exit was around at the low end 125. Thats 6%. Maybe its the 3 month and you want more than 6%. I also run a 12 day volume line on my volume to better predict the entry. Thanks for the video.
He was talking about the short side there around 127-128
Good video
Thank you Anurag.
Volatility charts would be interesting.
What a great teacher! Thank you!
good video, it helps visualize the macd much better, i usually use a 10 min with a 1 hr, but this also helps
Glad you found the lesson helpful Arturo.
Thank you for the fine presentation.
You're more than welcome John.
wow! even though the weekly is 5 days slower it confirmed the daily strongly.
How would you apply this to a 24 hour cycle like crypto or forex please?
Great question. I like to use a 1:3 ratio between charts. For 24 hour trading markets, my next higher time interval would be 72 hours, or 3 full days.
@@TopDogTrading Thank you sir. I appreciate your experience and expert tips. Many blessings to you for sharing your knowledge.
what do you do if you are trading the 1hr or 4hr time frame...?????
Not sure what you're specifically asking for.
@@TopDogTrading well mr dog , you look at the wk to get the entry on daily which when/if you just look on the daily gives the " FALSE divergence" set up... but if your looking at the 4hr or 1 hr time frame you cant look at the daily for an entry on the 1 or 4 hr can you???? because like you said just using the daily might not be correct but looking at the wk gives you the entry on the daily.....but if your looking at the 1hr or 4 hr and you look at the daily then go and entry a trade on the 1hr or 4 hr,,,boom you get it wrong....or should you not use divergence on lower time frames and just look at the daily, wk, and monthly time to trade divergence??? thanks
Awesome!
Thank you Juan.
Thank you🇨🇦
My pleasure!
Wow, I never knew. I should have, but I didn’t. Thanks for the thorough explanation.
Glad to help
Could I ca used in intraday
This strategy can be used intraday.
Great video. Thanks Dr. Barry
Very helpful video!!! thanks for posting.
You're welcome Bryant
love to learn from you! great job please keep up ;)
I had this issue quite some time new it's resolved. Wow thx a lot man
That's great Harsha, glad I could help you!
Thanks man, that really helped me to understand this indicator
Wonderful, I get a lot of satisfaction when I know that I've helped someone. Thanks for your feedback.
Thank you for this! Would this multi-timeframe strat work on the H1 and H4 setup?
Yes it will
Awesome.. it was a mystery for me.. especially in trending stocks which finally got answered thru ur video.. really thankful.. would be grateful if u can provide further live example on how we can use some other oscillator to support the macd signal
Thank you Ameen, glad it was helpful.
Nice concise explanation Dr. Barry! Thank you.
I'm glad you found it helpful Derek.
Very helpful. Thank you for making it
You're very welcome Nishit.
Very very good explanation. You got 1 subscribe here keep it up !!!
Thank you, I appreciate every new subscriber. Most importantly, I'm glad the tutorial was helpful for you.
So do you want to say trade in longer time frame for better macd divergence signals?
Very well explained !
Thank you very much +melwin86 I'm glad you found it helpful.
Very informative video.
Very simple and through explanation. Incidentally do you every change the default settings of the MACD Indicator and for what reason? Thanks once again Barry.
Thanks for you comment and question. In this example I'm just using the standard settings for MACD - you can see them in the 1st subgraph of the chart in the video: 12, 26, 9
nice ....but if we follow this , leads to get low profit and huge loss (earned profit) and MACD line crosses mean the trend is getting weak....
I appreciate your comment, but it doesn't make sense to me. Not sure why you would think that. My losses are always VERY small, and I let my winners run.
Great video, can you combine MACD with CCI for shorter time frames, like fifteen seconds?
That was very useful and interesting, thank you!
You're very welcome!
Thank you, great explanation!
You're more than welcome Sergio
Great explanation of MACD!
Thank you, I'm glad you found it helpful.
Thank you. Great video.
You're very welcome Allon, I'm glad you found it helpful.
nice
Thank you.
Thanks for posting.
Won a subscriber.
Thank you Matthew. Welcome to the Top Dog Trading family!
love your videos man!
Thank you Nathaniel, I'm glad my tutorials are helping you.
Very good video. Thank you!
You're very welcome my friend.
awesome........perfect invension!!!
Wow, thank you so much!
Dr Burns, great video. you are the best !
Thank you Miguel, that's very kind
NIce one.Can you please provide open range break out strategy during 1st hour of opening ? Thanks
Thank you for the request Tapan. I'll add it to my list.
Barry, please action this request on your list. TIA. ('Defer not 'till the morning what the evening may grant thee')
great info thanks
You're more than welcome John.
Thanks 🙏🏾
My pleasure, glad you liked it!
i love ur videos sir i am learning so much u are so brilliant in explaining things! i do have a question if anyone here could help me, i have my MACD settings on 2 fast line, 3 slow line, and 2 signal line, and the length i have 8 ema on 5m till daily charts, can anyone help me understand what the length means of 8 EMA?
I need a sound amplifier to hear anything that's said in this video.