MACD Indicator (It's Not Great, BUT....)

[@ivysarich7198]

I used the link from the blog. Ty. Been thru 300+ indicators, wow what a journey. I think I found 5 I like. Backtesting them in between 2 jobs. Good stuff, the few things I picked up from the blogs and videos have increased my winning percentage to the point I’m in the green on my live account. You have made a difference in my trading! Thx again

[@alexmackel]

The default settings (12,26,9) are for mid-term. Consider use short term settings, like 6,13,4. You can get more accurate entries and exits.

[@naturalremedies4196]

Alexandre, thanks for sharing. I'll try it out.

[@stuartwonghinweng]

Thanks for sharing, Alexandre

[@MrFruityDJ]

What setting should be optimal for stochastic on 5m timeframe?

[@thecaseylwest]

Natural Remedies how’d it work out

[@myasirlodhi]

Thank you for sharing. gonna back test

[@paulbucklebuckle4921]

VP, what a fella , he's so kind to us , thanks amigo.

[@samn65]

Hey guys I twicked mine by adding 6 and 18 exponential moving average on my chart and used CMF indicator to check whether both lines were above or below zero. Works perfect! Thanks VP for helping us discover a better way to trade! :-)

[@harrythornton7217]

Personally I actually use the MACD as a Zero-Line Cross indicator only, I got rid of the two lines cross as like you say, they're not that great. I use the fast EMA to identify a trend and the histogram to give a sign of the strength of a trend. Obviously I use a lot more tools (my base line, volume indicator etc.) At the moment I am using it as a confirmation indicator and an exit indicator when the histogram starts to get shorter it tells me the trend is ending. It's worked pretty well so far, still backtesting it on different settings but the system I have found so far (as a novice trader), it's working pretty well.

[@mikescarborough9196]

Agreed. I always prefer a zero line cross indicator. It's easier to read. Keep in mind that the zero line cross is merely measuring the distance between each of the two lines in the two lines cross. In TradingView, if I find a two lines cross indicator that I like, I go into the Pine Script source code and plot the difference of each line. That automatically turns any two lines cross into a zero line cross. Guess what? I don't know Pine Script or any other language! It's that easy to add a line to somebody else's Pine Script and totally change the output.

[@yumzeezltd274]

I swear.... everything about how this guy puts his content together. Gold. I've found my rhythm sir. Thank you

[@rayern1982]

Having watched this video probably 2-3 months ago and was absolutely clueless back then, I was tempted to watch this video again ( directed back here by podcast 25 ). it makes so much more sense now. I actually had to rerun the podcast series twice because I couldnt understand everything at 1 go. It definitely worth to go through all the materials as many times as possible because chances are we could possibly find some hidden gems here and there. Having been testing indicators for weeks, this piece of take-away is surely to add more values to my trading system. Thank you.

[@mretherrobertwarner5123]

Listen to all the videos again after putting them into practice. ALL of them, you will find something amazing.

[@billwells5211]

"Continuation Trades' This is BEST strategy using MACD than any another MACD strategy I've seen on u-tube. I do not trade Forex yet you have an invaluable channel for becoming a smart trader.

[@Chris-sl6zj]

Patrick-Just wanted to say thank you for sharing your knowledge. No, I have never came across anyone that presents the information as you do. Your gift as an educator is obvious in all your methods of presentation. Still looking for my indicator, but close to narrowing it down thanks to this video. Thanks again and God Bless! :)

[@kvjqxzz5905]

this is interesting. I am used to thinking of myself as quick on the uptake - but I have to listen to almost all of these vids twice, including taking notes twice, to master them. I think it is a matter of first listen to start to unlearn the old bad ways, and the second listen to get the actual message. Just off to download some nu indicators to test now...thanks VP

[@waynefilkins8394]

It works the way I use it. You covered part of my macd strat. It's not really good to write off any actual indicators, but instead write off strategies. Indicators can be used in many different ways and combinations with each other, so it's really pointless to say "this indicator is good / bad" except for just posting it for views or because someone asked or w/e. If I ever did a KZbin channel for trading I would go by strategy rather than by indicator, but I suppose you had to put the indicator name in the title for the algo

[@dee23gaming]

The RSI makes an excellent pullback indicator. I look for something I call "pullback divergence", and combined with a major support or resistance level, it can give you a sniper entry signal. When price re-approaches a zone, the RSI shows an interesting phenomenon where the swing low and price is on the same level, but on the RSI, one is overbought and the other is oversold, and this divergence signals a perfect trade entry.

[@ivooliveira542]

I just asked you a question yesterday and I was struggling to find something useful about the macd which I've been studying to see if it was worth it, and you've just answered it! Keep up the great work VP!

[@jpclbasic]

Indicators similar to MACD: PPO, Trix, KST.

[@Boobearmix]

thanks mate :)

[@pavelpenadiaz3662]

RVI

[@stuartwonghinweng]

Thanks a lot, JP

[@hugueskazeza4768]

Ergodic oscillator, Fisher oscillator

[@wisemcloughlin7145]

Whenever you approach a market , you must know have and know your edge - what will help you make money. The ability to recognize patterns is a part of my edge, but my greatest edge is the IQD strategy from Lukasz Wilhelm. You should run and get it if you don't have it already.

[@bottle1211]

i have tested the MACD thousands of times. its a winner. i also use the ATR to set my stop loss, and ema 200 to show an up trend and down trend. however. i did notice i was still missing the long term trend. so thats why im here, because the MACD is solid for sure. back test it. you'll see. but i know there is something better.

[@danielkarna]

Do you use MACD for reversals or what he labels "continuation trades" (talked about near the end of his video)... or both?

[@chintanpanndya768]

lots of love from India you are the best VP, I have observed something like this but can't made execution, I used 200 EMA to filter trends and then use continuation trades through other indicator VWAP but this is working better then vwap

[@Walddo]

Took me months of back testing to discover what you outlined in a 24 minute video 4 years ago. Cool.

[@rjpimprov]

I got rid of the histogram AND the slower MACD line...i'm only interested in the faster MACD line and when it crosses the Zero line. Combine that crossing and the price action is above the 200 SMA (for longs) and the ATR is going green and you've got a damn strong move. Works best in highly traded things like QQQ for daily trades (on the 1 min), but works incredible for swing trades on the daily for just about anything with decent volume.

[@paulking2039]

Histograms are great for people with old eyes, it comes to us all one day.

[@michaelkorb1]

Could you elaborate on what ATR going green means? Its just a number - how can it go green?

[@rlbjr32]

Hi VP I absolutely love your videos. I just started to learn to trade about 5 months ago and I’ve been all over the place up until about 2 weeks ago when I stumbled upon your channel. Since then I binged watched your videos, listen to you your podcast and Im constantly reading the blog. I love your style of trading, so much I’m implementing your strategy and working on my own algorithm. Thank you

[@stuartwonghinweng]

Listening and reading the blog for the 1st time, the 2nd time and 3rd time after having done the back testing,the understanding and insight on the rules on continuation trade have improved with increased clarity. VP, thank you.

[@cazkeymekam6427]

I took a break from the podcast to watch the dirty dozen video.....and we'll I'm now looking at a blank line chart 😅

[@howardhill3395]

I've changed the parameters on 1 of the more modern MACDs, & it is consistently very helpful to me.

[@ffredy70]

Wats ur parameters..?

[@naturalremedies4196]

Howard Hill, can you share your parameters? You might be saving someone from a blown account!

[@watatpriska8043]

pls which of the modern macd is that and wht is the parameter u changed ?

[@lew9572]

So, who cares. If you are unwilling to share, keep it to yourself.

[@roberthill3206]

Modified MACD to use Linear Regression(LSMA) and DEMA. it was a definite improvement, especially using angle and separation to filter consolidation.

[@duartealexandre8712]

58 dislikes are from Broke Reversal Traders 😅

[@FXBillionaire]

Bankers

[@redcentredoggies]

“Teach a man to fish”...love your style VP. Thank you. 👊

[@muhammadimran4880]

This video has changed my entire way of trading with MACD. After all I have found the exact MACD with zero cross and line cross. ✌ Thanks VP you are such a legend.

[@BuzzBurst-MR-X]

Can you share the setting please

[@godlightzakes4594]

Best forex KZbin channel ever came across. thank you so much stay blessed

[@andrefraser7309]

Best content you can get FOR FREE!!! OR PAID, i saw the difference in my trading after this guys education

[@thewanderingartists]

I used to hate forex, and would only trade binary options, but after watching your videos I'm interested again !

[@jeremikossak9553]

Histogram is mostly to confirm space between MACD and Signal Line. I think main purpose is to use it do draw divergences.

[@Darthrtrader]

Give a man a fish, he eats for a day, teach a man to fish, he eats for a lifetime.

[@ImmyYousafzai]

Until the man marries a californian woman and becomes vegan

[@jeromeyeo4720]

@@ImmyYousafzai HAHAHAHAHAHAHA

[@nicnatnattle]

class quote ..........from jesus i was told .....not a bad mentor

[@lew9572]

Geez, who wants to eat fish all the time... gimmie a juicy steak

[@williamlyons782]

what settings do you like to set your rod at?

[@SINGFIN1964]

Your explanation of the 'swiss knife 'cracks me up. Good presentation

[@myasirlodhi]

I have never seen a better video on MACD thank you

[@sameerss3343]

Assalamu alaikkum, Try MACD + CMF (20) in 15Mints, Put 0 line on Both and wait For Signal Above or Below the Zero Line on Both, Don't Take more than 2positions perday and take position only in the Asian sessions starts (In India it's a 5.30am) till European Close (It's 22.00 in India). All the Best Happy Trading...

[@duonganhquan6273]

The main line is the difference between a fast MA and slow MA. So when it crosses the zero line, it's a MA crossover. And the signal line is just another MA on the main line. And when the main line crosses down the signal line, it could indicate a change in momentum (aka most people use this to call reversal). To be specific, if the fast line and the slow line spaces out, it means that there's an increase in momentum one way or another, and vice versa.

[@valeriomuscas4805]

You are unbelievable VP! Incredible masterclasses.... and for free!! Thank you for everything mate!

[@ashokramkishwar5724]

This was fantastic for me has a learner...dont get sensible information like this anywhere....will now just follow ur chanell makes a lot of sense....thank you!looking forward to more videos

[@azceo]

This channel has me looking @ every zero line cross indicator I can find... trying to put in the work!!! And listen close lol

[@pavelpenadiaz3662]

try the RVI

[@luca-josephtoronga9650]

VP you deserve a noble peace prize. honestly.

[@poloparachutes9983]

I now understand why you emphasize on testing testing and more testing, because trading the daily’s gives you that time to constantly be tweaking your algorithm. Constantly getting better,

[@mcpt4196]

Use MACD only to identify the trend. Bellow 0 is bearish, above 0 is bullish. Then yeah you can use the MA's when they cross but as you said... there are other indicators to tell you that. A good thing you can use it too is to know when a major trend is about to end. Look for divergence between the lows or highs of the lines and the chart. Once it crosses 0 level, it's the beginning of a new trend. Yeah is not that great, but can be used in combination with other indicators to get some confirmation.

[@izzyrov5814]

The Swiss army knife analogy cracked me up 😂 I've been binge watching your videos and taking notes, and been learning a lot!

[@youngloudandscotty]

Here's a bit of education for anyone reading this. I've coded a bunch of different indicators on TradingView over the past year+, and as a result of this I have of course come to an understanding about how most of these work (most indicators in general, in fact). I think a lot of people don't actually understand these things, but I think it behooves you all to understand these things. Anyway, I'm going to explain the MACD real quick so you have a better idea of how it works. First of all, in the MACD indicator the MACD is only a single line. It represents the crossing of two moving averages (default is 12, 26). When the faster is above the slower the line is above 0, and the inverse is true when below 0. Generally speaking you would say above is bullish and below is bearish. When the MACD crosses 0 this indicates the two MAs crossing. This is many peoples' biggest complaint about it--that it lags too much (which of course it does--you're waiting for two lagging indicators (moving averages) to cross. Of course this is also a fundamental misunderstanding of the point of the indicator by these people. Anyway, if the MACD is below 0 but is moving up toward 0 (inverse is true if above 0) you're looking at stalled momentum in the trend indicating some sort of consolidation (or, simply put, 'chop'). This is where the other parts of the indicator come in. Signal line and histogram. The signal line is just a moving average on the MACD line. Its only use is to help visualize what is going on with momentum. This is why using it as reversal signal is bad. The MACD crossing it is merely a slowing of momentum in the direction of whichever trend the asset is currently in (and as we know, with trending assets consolidation is typically followed by continuation of the trend). Nothing more than that, really. This is why it works better using these crosses as trend continuation, as VP explains at the back end of the video. Now, the histogram is just a clearer visual of the MACD and signal line crossing. MACD crosses above signal line, then histogram is above 0, and vice versa. If you want to read the indicator more easily make the signal line invisible and keep the histogram and MACD line. And that is basically it. You don't even need the MACD, honestly. You can just stick the same two moving averages on the chart and use that as your entry/exit indicator. Or use a 1 as your fast MA. Every time price crosses the slow MA the MACD will cross 0.

[@petemiller519]

VP, I think this is your best video I have seen to date! Keep up the great work. Cheers.

[@eykay_thebarber8563]

VP✊🏼 you're great man, love you bro🤜🏼🤛🏼.. your videos truly make a difference in our trading(beginners), u show us a whole new level...n yeah no says it better than you man🙏🏼

[@rockwood666]

MACD is not that good alone .... you need an other indicator like a moving average (200) to make it work. You need to know the general trend . In your video, you're trying to buy in what it looks like a down trend ... which is nonsense.

[@SSEnrich]

GBPJPY the 200 EMA will not react fast enough. You might as well trade against the 200 EMA trend or when the line is flat. As a general rule for most currency pairs then I agree with you.

[@ErimaEzekiel9648]

Can't believe this is all free. God bless you @VP

[@AndrewSchiewe]

Goddammit, I was using it the wrong way. I have gone the no nonsense way now to attempt to ride the trend! In fact I am going to try this out tonight at 2240 my time and set the 1x Atr as a stop loss, if I have candidates of course, no USD pairs in my trading as well for the mo. I use to use market structure to set stop losses before..

[@jasonrajotte5172]

VP Rules!!!! Best Damn FX Mentor Out There!!! Finally Someone Willing to Show Us the Legit Way to Use Indicators......

[@naturalremedies4196]

Always on point! I watched the video again for the sixth time, and it is still fresh! Thanks VIP VP!

[@KyngMytus]

Muscle Cars Will Forever Rock #MacD GT... Great Work VP 🙏🏽🇯🇲💯

[@Sam-sl1uy]

Love the video vp, great personality, knowledge and humour. keep up the great work.

[@theanomalysubliminals5008]

OOOO thats a prime example on how to use the macd on the Aud, my second favorite currency pair.

[@sameerss3343]

One of the Best FX Channel I have ever seen. Thanks VP God Bless u..

[@Mbelu456]

I use 8 21 5 macd setting and i have wins on daily chart

[@josecarlosxyz]

For some reason I like this indicator probably because of the bars resembles the volume on stock trading.

[@msar64]

Actually the Mt4 MACD and the other say in Trading View is the same. 1. MT4 draws the dif between slow and fast MA in the form of bar chart and where as in Trading View just one solid line. (We can replace the bar chart in MT4 by assigning same color with the background plus add another MA for this MACD set at 1 by using first indicator's data) 2. Both drawn the same as one solid line for the MACD SMA also known as signal line 3. However Trading View has another bar chart to indicate the dif between the MACD line and the MACD SMA line which is not really needed. 4. I found 5, 35, 5 is better than the default setting 12, 26, 9

[@carlguerrier163]

MACD is good but it has a slow timing about telling reversal trends. It best if you change the indicator to a Normal MACD. Normal MACD calculate precise time of trend reversals. It best if you use it on Trading view. It best for trading stocks and forex.

[@bestlty]

I like how VP has multiple indicators to stop losses. Your wins mean nothing if they are not protected.

[@troyknight8199]

Great teachings on one of the most popular indicators. Once again I am grateful at your wealth of knowledge and your willingness to share it with us. Much love and respect!!!! (BIG THUMBS UP)!!!!!!!

[@georgekuh4491]

You're an absolute life saver vp , God bless you man .

[@Neptunianist]

"The MACD, overall, is pretty shit". Classic.

[@jazzman9386]

Thanks for putting out this video; nay this channel out there. I have been trading for more than a year but this has taken it to a whole new level. Brilliant

[@allanmorales541]

Lmfao!! bro you’re humor is beautiful 😂 freaking army knife 😂😂

[@mo0do0]

I like your channel to and extent that I hit the like button before I even start watching the video LOL. Keep educating us please. I really appreciate what you are doing VP )

[@vcimagination7137]

Looks like a really good exit indicator

[@dawitalula8812]

this guy is one in a million

[@nicnatnattle]

this is the best video you have ever made ........fits like a glove with my screens and its either 100% in or 100% avoid like death .as vp says research and work .......i win thats all

[@NoNonsenseForex]

Doesn't have to be any less simple than that.

[@nicnatnattle]

@@NoNonsenseForex spot on ........your stuff is wonderful

[@douglaschristensen]

Wow!! I am blown away!! Thanks VP!

[@johnm2241]

Fantastic video VP! One of your best!

[@OverLeveragedTrader]

Bro you ligit love your content thank you so much I’m going through all your videos over and over!

[@Red123Road]

thanx for a great video, thax for the time you put into it.

[@beverly2jaustin]

This was so helpful. Thanks VP!

[@weblogmovie]

Thank you ver much.Good job. Thanks from Holland - Europe. MACD was a eye opener...! Zero line WOW

[@ianthomas9314]

WOW.... beautifully explained!!! Adding to my arsenal immediately

[@anthonyukpong2024]

Man you got me hooked!!!

[@ricky4682]

That second knife is amazing.. i have 1 as an edc and so does my wife. Ontario knife company or something of the sort..

[@makariwellness]

Having a knife is not nearly as valuable as the skills to use it.

[@jnizamani]

The best youtube channel.Even the best content availabe online.Thanks

[@shayeonipinsaiye3065]

Thank you very much VP. Selfless love you portray there. May heavens reward you.

[@mehdimirzaei3112]

VP you are the best. Thank you very much for all you doing.

[@sameerss3343]

Try MACD + CMF (20) in 15Mints, Put 0 line on Both and wait For Signal Above or Below the Zero Line on Both, Don't Take more than 2positions perday and take position only in the Asian sessions starts (In India it's a 5.30am) till European Close (It's 22.00 in India)..

[@NM-kt4ht]

Testing the 14 period RVI with Aroon up and down. Not taking the Aroon crosses but rather looking to which line is at 100 and 0 for trend

[@God__Is__True__4__Us]

Much Appreciate This Channel 🎯

[@CarooInvestment]

Thanks for sharing. but maybe better if you start at the last 1/2. it's on more focus

[@RixiRooTM]

Watched this for the second or third time. It has clicked!! Hooray. Thanks VP! ("Will the real macd indicator please stand up..." LOL!)

[@codywhalen7852]

Hey VP, i have been following you for 1 week and my mind is blown 🤯🤯 I took ichimoku and with some tweaking and adding a couple other indicators and backtested usdcad for 2 years and got a 17:1 win rate AMAZING!!!!!!!!😍😍😍 Im wonder why you didnt mention DIVERGENCE in your MACD video? Just in your examples there were 3 winning trades on each the eurusd and audusd that weren't mentioned. I understand those trades are reversals and thats not what we do but divergence is in the name of the indicator so just wondering why you didnt mention it? Love everything your doing Be relentless Go get it

[@poloparachutes9983]

I don’t know why anybody would want to trade the 5 min charts or similar, that’s so stressful lol trading the daily’s makes 1000% sense, so much time back, and honestly less stress.

[@rodrigog.c.6047]

In Argentina, it´s 1 usd x 200ars. So with little margin you can make wonders... Third world, woud not get it lol

[@OptionsTradingChannel]

I just found your channel about 4 days ago and love it! I binge watched all of your videos in a matter of 2 days! I am a stock trader. More specifically, I trade options. I know what you are thinking the moment you read that lol and I know you do not 'endorse' stock trading as you are strictly a Forex trader. I, like everyone else subscribed to your channel, am so curious to know your 'algorithm'. I think I figured out one other indicator that you use. I have a lot of back testing to do but it looks very promising. Even if it ISN'T it (although it fits with all the "clues" you have given us thus far and it also DOESN'T fit in your "Dirty Dozen' video) It has already made me think differently about the methodology that I use. So I would say that your KZbin channel is already successful, and for that, I thank you! I look forward to watching out for more clues! Thank you AGAIN!

[@alekseikostikov27]

The MACD always consists of two moving averages (fast and slow). Strong movements in price cause the distance between the two moving averages to increase (Divergance). When the momentum of the trend begins to slow, the slow moving average is able to catch up to the fast moving average, narrowing the distance between the two (Convergence). The histogram is a representation of the distance between the two moving averages. It's peaks represent the climax in momentum, reversal from the peaks represent a decline in momentum within a trend. If the histogram is displaying an extreme value, it might be perceived that a trend has moved too far, too fast, is overextended, and unsustainable and is due for a correction / pause / period of consolidation / reversal. Just as effective, would be putting a simple 18 EMA on your chart. You will notice that during trending periods, price will only deviate from the EMA to a certain extent (Maybe 300 pips, depends on the instrument) before a consolidation period. (This would probably produce similar results like overbought RSI or any other indicator derived from price) As with all indicators, it's interpretation is subjective, and can be misleading. Systematic entries / exits based on indicators has advantages and disadvantages. Tuning parameters in order to achieve optimal entry / exit conditions is deceiving because market conditions constantly change. If you are using a 100% truly systematic trading system, why not program it and be done with it? I'm not a hater or troll, just expressing my experience and the experience of others. I've researched many of the top systematic traders in the world. Learned to program mql, python, c#, and spent countless hours (years) trying to piece together the holy grail. While there are profitable systems, I remain convinced that it's very difficult to sustain a system that remains profitable. There are quant hedge funds, back testing thousands of systems constantly over decades of market data and they'll tell you, an extremely small number of them even make it to the forward testing stage.

[@mikekirkpatrick6718]

I'll bet you're a barrel of fun on the weekends...

[@wiz987]

No mention of divergence?

[@osamashahid237]

Thanks this was really helpful!

[@robertocontreras6517]

Sooo basically the Oscillator of moving averages

[@pavelpenadiaz3662]

RVI is a Continuation trend indicator. Vp talk about this in his last video about baselines. But before you go there please watch all videos first.

[@Donvito293]

I made a plan based on your videos (and my education). When I succeed with it, I'll send you a swiss army knife, directly from the heart of Switzerland!

[@NoNonsenseForex]

Make sure you include a return address.

[@gabooogh7068]

I get the Joke. hahaa

[@lew9572]

And the hot butter to use the knife to cut the butter!

[@rodgeraarons8997]

Wow! The best. Thanks VP

[@jerrymander8020]

Thanks a lot for this very kewl idea.

[@Mike-Downs]

There are so many nuggets in this vid.

[@linxin8285]

Macd work well if you use for trend following. Never ever use it for trend reversal. Just wait until the line crosses zero line, and you can use it for pyramiding as well by combine it with breakout when there is a pullback 😁

[@Neptunianist]

As a slight modification to the strategy you proposed at around 19m might I say wait until after the x-over to see if the following histogram bar was also present and in the same direction. This would have filtered out the losing trade near the end but kept you in the winning ones. Effectively it become a one-period lag but is accompanied by a divergence (pardon the pun) of the two lines, supporting direction and momentum. What do you think?

[@JoshuaHolding]

Gone through the whole course, up to this point. Would you suggest we finish the course before searching for indicators? Thanks

[@fareed_24247]

Thank You VP

[@NickPeters-zc2ms]

Thanks for the "Edge" u cation! (Quote- Mark Douglas)....