Trading MACD Histogram
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- Опубліковано 23 чер 2024
- Trading MACD histogram indicator strategy using divergences and convergences in momentum.
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MACD histogram trading: how to use the indicator for buy sell signals.
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Barry Burns
Top Dog Trading
TopDogTrading.com
Facebook: / topdogtrading
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Watch the related video: "MACD Divergence Strategy"
• MACD Divergence Strategy
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Risk Disclosure: bit.ly/Risk-Disc
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RISK DISCLAIMER:
The information contained on this video is for informational and educational purposes only. We are not registered as a securities broker-dealer or as investment advisers, either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Trading and investing involves substantial risk. Financial loss, even above the amount invested, is possible. Seek the services of a competent professional person before investing or trading with money.
The information contained on this video, is not provided to any particular individual with a view toward their individual circumstances and nothing in this video should be construed as investment or trading advice. Each individual should assume that all information contained on this site is not trustworthy unless verified by their own independent research.
Any statements and/or examples of earnings or income, including hypothetical or simulated performance results, are solely for illustrative purposes and are not to be considered as average earnings. Prior successes and past performance with regards to earnings and income are not an indication of potential future success or performance.
You should never trade with money you cannot afford to lose. The information in this video is in no way a solicitation of any order to buy or sell. The author and publisher assume no responsibility for your trading results.
This information is provided "AS IS," without any implied or express warranty as to its performance or to the results that may be obtained by using the information.
Factual statements in this site are made as of the date the information was created and are subject to change without notice.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. - Навчання та стиль
I think this is the best video about the MACD that can be found on youtube.
Thank you, I'm glad you found it so helpful!
I totally agree, it explains everything about it so well.
was gonna say the same thing.....
Agree Agree Agree
I wasn't sure I should take financial advice from Elmer Fudd, but you convinced me to be patient and watch til the end
Wow! EVERYBODY teaches this incorrectly, but you, sir, have set it right. I have struggled for a long time trying to "understand" this indicator and now the light has gone on, I hear the angelic choir, and yeah--I am good now. Thanks!
That is quite the compliment, thank you! Most important, I'm glad the video was so helpful for you.
Interesting what you said about trading with convergence in the beginning of a trend and then a divergence later as the probability of a reversal is higher!
I've traded the macd divergence for years, but you've given me extra insight into the convergences early in the trend. Thanks very much.
Glad I could add something for you Ken.
How's the result?
VERY GOOD EXPLAINED MACD LINE AND MACD AVERAGE LINE OR MACD SIGNAL LINE AS WELL MACD HISTOGRAM ALONG WITH CONVERGENCE AND DIVERGENCE WITH THE HELP OF DRAWING FIGURES. THANKS MR BARRY SIR FOR PROVIDING DETAILED KNOWLEDGE OF MACD INDICATOR THATS IN FREE..BEST REGARDS.
You're most welcome Gautam.
great explanation , never seen anyone explain it as well , gave me a fuller understanding of how it works, love it for divergence/ convergence , thank you
You're very welcome.
I didn't know how to use indicators, I’ve been using the MACD as part of my successful trading platform but not with indicators, only trade plan and develop strategy. I strongly endorse everything you have to offer for aspiring traders wanting to achieve consistent long term success in MACD histogram. I look forward to reading your quality, in-depth market summary every day. Keep up the great work!
Thank your for the kind words and I'll keep more free tutorials coming!
Thank you Barry, please don't stop with the videos!!!
Thank you, I appreciate your appreciation!
I’ve been using the MACD as part of my system and I still managed to learn something new about it in this video. Thank you.
You're very welcome Rolando.
How's the result using this strategy?
A. M. Still on my charts. If you look at the SPY, it turned red right before the Feb falls, green a few days after the March 23 lows, and just recently turned red again.
This is an EXCELLENT video! I wish I watched this when I first started trading. Thank you so much, Dr. Burns!
Glad it was helpful!
MACD was one of the first indicators I used, hasn't changed much but it still works.
It, like most indicators, can be useful if one understands what they really mean and use them as just one piece of evidence in an overall trading methodology that gives you a statistical edge.
Thanks Barry, I think this is the only video I've seen regarding the histogram, great info!! Have fun!!
You're very welcome Dan, glad you found it helpful.
Perfect watched it one time and you gave a great job explaining in detail with math, visuals, and examples. Thanks again!
Glad it was helpful Ricky.
Your video's are always very informative and unique. Thanks Barry.
Glad you like them Vineet.
Great explanation and excellent reasoning of using convergence over divergence!! You Sir are an awesome teacher and thanks also for the free knowledge!
You are very welcome
Thanks Barry, You do make things clear!
I appreciate that David.
best explanation of the mac i have watched or read
Thank you Hassan, I'm glad you found the lesson so helpful.
Thanks Dr. Barry. Very good explanation.
Glad you found it helpful
What a fantastic explanation of the MACD.
Thank you so much Steve.
Thanks again for this! Have a nice day
You're more than welcome Maurice.
Makes sense. I hadn't thought to use it as such. Thanks!
You're very welcome Fred.
Great video & explanation. Thanks.
You're very welcome, I'm glad you found it helpful.
Sir, You are fantastic!
Thank you Mohammad, you're pretty fantastic yourself!
Great educational videos. Thank you for sharing.
Thanks for watching!
Another superb video...
Glad you liked it Jaiswan.
Very nice to identify divergence. Well done sir.
Thank you, glad you found the video helpful
Finally a good explanation!
Glad you found it so helpful Manos.
one of best videos i watched thanks sir
Most welcome
excellent.thank you for your sharing
Thank you! Cheers!
Great video as usual. I think the histogram is probably the best leading indicator for price action.
I usually delete the macd/signal line and even the cross and have the histogram only, colour coded in red and green. I found it helps reduce noise greatly. Using the histogram as your trading bias for long or short with a price break confirmation strategy combined with moving averages works really well for me.
Thank you for sharing that and adding to the discussion.
Nicely done, thanks!
Thank you Francesco.
So nice of you. I did. And the music is quite good. Hallam in always sunny Barbados.
Thank you Hallam.
Brilliant explanation.
Glad it helped!
great video. Thank you very much sir! keep it up :)
You're very welcome Aletena.
Thanks for your video sir. I'm subscribing after the first view of your video. I will be emailing you for the free course too. Excellent explanation in 10 minutes.
Awesome, thank you Richard.
Great content. Thank you.
Glad it was helpful William
Simple and helpful.
Glad it was helpful!
good and clear content, thanks! (one of your students here)
do you have other MACD videos completing this one?
I did another UA-cam video on the MACD here: ua-cam.com/video/F7zCaLnf25k/v-deo.html
Thank you
You're welcome Mahdi
great video!!!
Thank you Daniel.
Awesome your vedios sir!!
Glad you like them!
Thanks you sir
You're very welcome Narpat.
Thanks a lot
Happy to help
Hello, long time student here, trying to unlock my old course materials, no longer use the email account that is attached to the password. Geat video!
Hi Benjamin, Send me an email at Barry@TopDogTrading.com and we'll get you back into the courses my friend.
Awesome 👍
Thank you Pallav!
Don't remember anyone ever pointing out that convergence is most important and after a long trend to start looking for divergence.
Glad to be the first Walter!
Respected Sir, we need another descriptive and eye opening video about MACD.
Okay, I'll add it to my "to do" list. Thanks for the request.
great vedio
Thank you Ashish.
you have a great voice
Thank you, that's very kind of you.
The histogram is whar I find useful .
Great! Then don't mess with success Jerry.
Great video Barry, love the MACD. Could you go into more detail about different MACD settings, in particular the 3, 10, 16 setting (AKA the 3-10 oscillator)? 12, 26, 9 is the default setting commonly used but have you ever tried it with the 3, 10, 16 setting? This setting was made famous by Linda Bradford Raschke and some other big traders (Christopher Terry) swear by it. I think someone wrote a book about it too but the title escapes me. It's supposed to give faster signals in a similar way that the histogram does for the 12, 26, 9 setting but from what I was taught, with the 3-10 oscillator you remove the histogram entirely and instead just plot the MACD line as a histogram and use it that way. I think a video like this would be very interesting and would be much appreciated from the MACD and general indicator enthusiasts.
Yes, I learned those settings from Linda Raschke many years ago. It was one of her staples.
Daniel did you use the macd with 3 10 16 if it was ok and give you good results pls let me know so that i correct setting too thanks
@@muzamilsana3436 Yes I have used the MACD with the 3, 10, 16 settings and I found that It gave me good signals. I primarily used it by looking for divergences for trading reversals and momentum shifts.
Thanks Barry! Watched all your videos
Daniel thank you for your input. What time frames doe it work
Dear sir you use histogram above zero line some time and some time below zero line for finding divegence that is little confusing please help me for ploting right one.
So let's see if I got this right when we see the crossovers that's a good point of entry correct? I'm going to watch it a couple more times and see if I get anything more I sure appreciate these videos and I actually bought your TOs 5 method trading system but I haven't been able to load it in my computer because my computer keeps crashing with the regular platform TD Ameritrade so I'm getting another computer ordered so I can hook up your system on my TOs sure looking forward to it I'll let you know how I do thanks again
Since you have the Top Dog Trading Visualized Trader, I'd just stick with that method. Good luck on getting your computer up and running again.
Excellent explanation of the MACD and histogram, anything info about the MACD being above or below zero?
Some people use that as a signal - I personally don't.
Above zero, a rising MACD line will result in strong moves in price and a falling MACD line will result in either a flat price trend (when MACD is far from the zero line) or a shallow decline (when MACD line is closer to zero line).
The same is true for MACD below zero (falling trend).
To capture large and strong moves in multiple waves, figure out when MACD is crossing over the zero line on a larger timeframe and enter when signal is given on a smaller timeframe. This way, you are poised to enter the larger move, but are able to squeeze the last drop from the move due to entry within the smaller timeframe (obviously, risk is also minimized in this kind of tactic).
I find that the distance of the MACD line traveled away from zero provides an added dimension in terms of strength and amplitude of the price move that histogram alone does not provide.
This are simple principles i learnt from Dmitry Vladislav method system before i engaged into trading Forex or stock market. 1-Understand trading is about probabilities, not certainties. 2-Learn to read and trade price action. 3-Turn off the news. 4-Learn how to properly place stop losses. 5-Learn about position sizing. 6-Dial-down your risk. 7-Stop looking at intra-day charts all the time. 8-Stop over-trading. 9-Get a trading education and 10-If you’re lost and losing often, STOP trading (for a while). If you want to learn more, i extremely recommend you to get the candlestick trading bible of Vladislav and learn about Blended model strategy.
You sounds like David Costabile in BREAKINGBAD series
I loved Breaking Bad!
What would be the best day trading macd histogram periods and MA'S for the charts? I noticed you had 3 min
The MACD adjusts to whatever time interval you place it on, so there is no "best" time period for it.
amzing
Thank you so much.
🐐
Nice one
Thanks 🔥 Kenneth
I read divergences well just need work on timing is my biggest and hesitation..
🤔 Is it possible - in your opinion - to use the EMA 26 and 12 as substitute for the MACD indicator ??? I’ve been trying this for the past few days,
when the two moving averages 12 and 26 diverge to maximum distance, then the MACD lines cross , and since it’s easier to notice when they are almost at maximum distance from each others before you notice the MACD lines are about to cross , then this may serve as an early warning sign of divergence that comes little earlier than the macd signal ... what do you think ?
If you'd rather look at the moving averages themselves than the MACD, then that would be perfectly fine.
Thanks for the great explanation Barry, to see the convergence and divergence do you have to keep the SMA's same in MACD and Price charts?
Hey Carl, no you don't have to use the same MAs, I just did that to illustrate how the MACD patterns are formed.
All this is explained in trend trading for dummies just buy the book its amazing
Thank you, glad you liked my book.
Thanks for the top videos Barry, they're extremely helpful. Q: Aside from using MACD, would you prefer EMA 12 and EMA 26 on charts for both intraday and D1 time frames?
Those are the standard inputs that would be used on all time intervals.
@@TopDogTrading Thanks!
Barry, Would the "Williams" MACD behave in the same way?
I haven't taken a good look at it, but his MACD was a bit different as I understand it.
thanks for ur video, can you tell me i am trying the settings on think or swim software, fast length 2, slow length 3, MACD length 2, which is the signal line, average type is EMA, and at the end i have a option to put LENGTH as 8, so my question is what is the last bit in info mean, EMA 8 length ? can anyone help me out thank u!
8 EMA would be the 8 period average of the difference between the fast EMA minus
the slow EMA to create the signal line which is smoother than the MACD line. Hope this helps!
@@gregs8736 thanks bro lets see if I understood you correctly and forgive me if i dont, do u mean the ema 8 settings is that looking at the past 8 candles and the difference between the EMA 2 and 3 EMA? If so what is that actually doing brother.
Thank you
Can i use longer period(1d) instead of 3mins?
Yes, absolutely!
@@TopDogTrading Thanks for the reply and the tips!
Is this work on any minute or only 1 minute. Thank You foe your reply
Sorry not foe but for
Works on any time interval.
which one is more potent on macd indicator?? histogram divergence or ema divergence on macd indicator?
if u find answer please let me know thanks
In the second example, the histogram below 0 is making higher lows but trend is going down. Can someone explain ?
Yes, the histogram does not measure trend.
Spotting divergence is fine. But when to take entry and exits is something which is missing in every divergence video.
100% agree, which is why I never trade divergence by itself. It's only one piece of evidence for trading. I use my Market Timing Indicator to determine WHEN to take a trade.
Very difficult for following reasons:
1. I observed this for whole day on National Stock Exchange of India on Bank Nifty Future 1 minute chart at my broker account with a Trading View Partner, FyersOne Web as we don't have Ninja Trader available in India. I must say, It is very difficult to spot such Divergence of Histogram Vs Price Action as shown in this video. Even this video shows it occurred for 2 minutes between 7:49 to 7:51 or so at 9:48 min of video part out of 10:18 minutes.
2. As bars gets printed on Live Chart and Price moves from moving down to moving up, it is a very very thin line and often histogram seems to be moving as per price and thus whenever the MACD line and Signal line crosses or touch each other, the Zero of histogram from max to min or vice versa seems to be as per price only. There is no facility of posting chart, images in comments or I would have shown why its so confusing and difficult.
Sir I have been trading on Olymptrade app I lost my can you please suggest me more accurate strategy
sarat kumar buy low sell high friend
@@fayde9941 what sir?
It seems a shame that both the colours of the 12 & 26 MACD cannot match the EMA's. It would be very useful.........Also my comment about the Williams MACD, I think "Williams" was a Histogram, not a MACD.
Good suggestion Carol, thank you. I'll keep that in mind for future videos.
Trading MACD with the *Analysis signal hedging* strategy has also got a mad divergence with PA and res & sup, always make your research properly!!!
This was confusing
🙏🏾
Awesome your vedios sir!!
Glad you like them!
Thank you for your reply.