Indicators: "You Can't Work Alone"
Sad to say there isn't any single indicator work perfectly in my trading experienced. Nevertheless, MACD is one of the primary indicators since day 1, I interacted with them.
I use MACD to determine the below 3 keys signals:
"Trend" - When the MACD above the 0 axis is an indication of bullish, and conversely as bearish.
"Trend" - When the MACD above the 0 axis is an indication of bullish, and conversely as bearish.
"Momentum" - Histogram (the result of MACD minus the Signal line), it velocity is a good indication of stock momentum.
"Direction" - Golden cross (MACD crossover) & Dead cross (MACD cross-under) is a good indication of changing of direction.
As there is no single indicator work accurately by itself. I blend in the oscillator indictors KDJ/RSI (both given very similar effect) to determine the buying/selling sentiment:
"Overbought" - When the K line crosses above 70/80% it indicates the market was heated up with strong buying sentiment.
"Oversold" - When the K line crossed below 30/20% it indicates the market was depressed selling sentiment.
Below the example of combination of the
1. Chart pattern: Rebounce after retracement where forming HL (Higher Low)
1. Chart pattern: Rebounce after retracement where forming HL (Higher Low)
2. MACD: Golden cross and crossed 0 axis indication of bullish trend
3. Oscillator (KDJ/RSI): Reversal from Oversold (<20/30%) and Golden Cross.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
I Am 102927471 : Good you found indicator that suits you.
alleo 两朵花 OP I Am 102927471 : no right or wrong in any indicators, just personal preference.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
I Am 102927471 alleo 两朵花 OP : Can I suggest to put volume on it?
alleo 两朵花 OP : haha...Volume is always by default. Just on that post theme is MACD & KDJ, I don;t cloud the chart. By I not really use the moo chart, I am using the Tradingview.