Moving Average Convergence Divergence
|TweetGet Your Forex Profit With Moving Average Convergence Divergence (MACD) (DVD + online version) Here
Forex Profits With MACD by Frank Paul is a practical guide to understanding and applying the MACD Indicator for Forex trading. Master one of the most powerful and widely used tools of technical analysis. Comes with 3 FREE BONUSES.
- Bonus 1: THE MACD-PARABOLIC ENTRY SYSTEM
- Bonus 2: USING INDICATOR OVERLAYS ON MACD
- Bonus 3: WEEKLY MACD ‘CHART OF THE WEEK
“FOREX PROFITS WITH MACD”
DETAILED COURSE CONTENT
(over 6 hours running time)
Module I
- Introduction
- Why MACD?
- Course format
- Content overview
- Key trading principles
- Footnote – nomenclature
Module II
- What is a MACD crossover? (Example 1 – bullish)
- What is a MACD crossover? (Example 2 – bearish)
- Three types of MACD crossover
- ‘Weak’ and ‘strong’ crossovers
- Application #1: Anticipating MA crossovers
- MACD crossover with Guppy ‘bowtie’
- Application #2: Validating chart reversal patterns
- 123 bottom with MACD crossover
- Application #3: Validating reversal candle patterns
- MACD crossover with reversal candle (hammer)
- Application #4: Confirming strategic support/resistance
- MACD crossover confirming Trend Channel support/resistance
- Application #5: Validating trendline breaks on price
- MACD crossover with TDTL analysis – USD/CAD
- Application #6: Confirming completion of prior price projections
- MACD crossover confirmation example
- Application #7: Corroborating readings on other indicators
- MACD crossover corroboration example
- Application #8: Drawing trendlines on MACD
- MACD trendline break corroborating price trendline break
- Module recap/conclusions
Module III
- What is a ‘counter-trend pullback’?
- What MACD does in a pullback
- What a counter-trend pullback looks like
- Technique #1: Spotting pullbacks with multiple timeframe analysis
- Daily and 180m chart example side-by-side
- Technique #2: Spotting pullback with Moving Average analysis
- Spotting pullbacks with two MACD settings
- Example using two MACD panels to spot pullbacks
- Trading the resolution of a pullback
- Trading pullbacks with MACD continuation crossovers
- Trading pullbacks with validated trendline breaks
- Trading pullbacks with an EMA crossover on the same timeframe
- Trading pullbacks with low level signal confluence
- Module recap/conclusions
Module IV
- What is divergence?
- Step 1: Find ‘swing points’ on MACD and/or the histogram
- Step 2: Draw trendlines on MACD
- Ascending tops and bottoms on MACD
- Step 3: Draw trendlines on price
- Connecting swing points on MACD and price to signal divergences
- Slant vs. peak-to-peak divergence
- What is positive divergence?
- Standard positive divergence
- Inverted positive divergence
- What is negative divergence?
- Standard negative divergence
- Inverted negative divergence
- Why divergence sometimes doesn’t work
- Entry strategies that can be used with divergence
- Entry strategy #1: First higher/lower close beyond second swing point
- Entry strategy #2: Flip of histogram to opposite side of the Waterline
- Entry strategy #3: Trendline break on a lower timeframe
- Entry strategy #4: Moving average crossover on a lower timeframe
- Entry strategy #5: Signal confluence on a lower timeframe – part A (60m chart)
- Entry strategy #5 (cont’d): Part B – 15m chart
- Module recap/conclusions
Module V
- MACD Trend Cycle – introduction
- Preface – sample chart setup
- Event #1: MACD crosses the Trigger line
- Chart example
- Event #2: MACD attains Angle & Separation
- Chart example
- Event #3: MACD crosses the Waterline
- Chart example
- Drill-down to 180m chart to find the dip
- Event #4: MACD clears the histogram
- Chart example
- Event #5: Histogram forms divergence to MACD
- Chart example
- Event #6: MACD crosses over in reverse direction
- Chart example
- Module recap/conclusions
Module VI
- What is MACD neutralization?
- What MACD neutralization looks like – DOWN move on price (part 1)
- What MACD neutralization looks like – DOWN move on price (part 2)
- MACD neutralization after a down move
- What MACD neutralization looks like – UP move on price (part 1)
- What MACD neutralization looks like – UP move on price (part 2)
- MACD neutralization after an up move
- Trend continuations vs. reversals
- Continuation/reversal patterns
- Using trendline analysis with ABC patterns
- ABC up with trendline break
- Using other indicators with neutralization
- RSI and SMI indicators with MACD neutralization
- Using trend analysis (EMAs) with neutralization
- Higher level trend analysis (EMAs)
- The Leg 1/Leg 2 paradigm
- Reading the Leg 1/Leg 2 paradigm with MACD
- Module recap/conclusions
Module VII
- Standard 123 bottom pattern
- Sloppy 123 bottom pattern
- Standard 123 top pattern
- Sloppy 123 top pattern
- Primary uses of MACD with 123 tops/bottoms
- Standard 123 top: Identify #1 position with MACD crossovers
- Standard 123 top: Identify #2 position with MACD crossovers
- Standard 123 top: Identify #3 position with MACD crossovers
- Trading strategy options: standard 123 top
- Drilling down to scalp the action on 123 positions – 3hr chart
- Standard 123 bottom: Identify #3 position with histogram waves
- Sloppy 123 bottom: Identify #3 position with MACD divergence
- Module recap/conclusions
Module VIII
- Top Down Example #1 – USD/CHF, August 3 rd, 2007
- Indicators used
- Weekly chart
- Daily chart
- 240m chart
- 120m chart
- 60m chart
- 15m chart
- 5m chart
- Aftermath: 228 pips, 11.4 reward/risk ratio
- Top Down Example #2 – EUR/JPY, July 24 th, 2007
- Indicators used
- COT chart and USD/JPY reference
- Weekly chart
- Daily chart
- 240m chart
- 120m chart
- 60m chart
- 15m chart
- 5m chart
- Aftermath: 69 pips, 3.0 reward/risk ratio
- Top Down Example #3 – USD/CAD, August 1 st, 2007
- Indicators used
- Weekly chart
- Daily chart
- 240m chart
- 120m chart
- 60m chart
- 15m chart
- 5m chart
- Aftermath: 148 pips, 9.9 reward/risk ratio
- Module recap/conclusions
Special conclusion about MACD -Moving Average Convergence Divergence
MACD always brings together momentum and trend in one indicator. This is a very special feature of this forex trading indicator. As such MACD is closely linked to price action, which is the most important aspect to watch on a chart. MACD’s special relation of trend and momentum can be applied to all time frames especially visible in the daily, weekly or monthly charts. The standard setting for MACD is the difference between the 12 and 26-period EMAs but I like using 21 and 55 -period EMAs and 12. With my setting of 21, 55 and 12, MACD still oscillates above/below zero, but the centerline crossovers and signal line crossovers is less frequent.
In spite the great use of MACD in trend and momentum, never use MACD to identify overbought and oversold positions. MACD does not have any upper or lower limits to bind its movement. MACD can continue to overextend beyond historical extremes.
MACD -Moving Average Divergence Convergence is very interesting to learn more. Check out
Get Your Forex Profit With Moving Average Convergence Divergence (MACD) (DVD + online version) Here
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