MACD Technical Indicator Day Trading Gold Futures Crude Oil Euro

– How to use the MACD on our trade management chart

o MACD = Moving Average Convergence/Divergence
o Trade management chart helps us manage our trades, no matter what type of trader you are.
o At the bottom is the MACD

 More info in the Beginner’s Course on this indicator
 Advanced Members will OWN this indicator
 King of all LAGGING indicator

• Lagging = late to the party
• Used for EXITS, never for entries

 I use the MACD many ways

• Looking for the MACD to be above/below the zero line.
• I watch the moving averages to see if they are above/below zero line and rising/falling
• Divergence in the histogram

o Did we get higher highs on the histogram along with higher highs on the price?

• Look for the histogram to break below the zero line, only to snap back up above

o This should happen quickly
o With all the different ways you can use this, remember to use it with your exits.
o MACD says to get long, I should be covering a short, not entering long, its too lagging.

– Different timeframe charts

o Slow = 34 range
o Fast = 8 range and 4 range
o Fast = 21 13 range

– Watching the Dollar