Using the MACD Indicator for Short-Term Stock Trades | Getting Started with Technical Analysis

[@ahmadmonajemi4482]

Thank you Cameron for the in-depth explanation of MACD. It's always helpful to kmow the basic theoretical construction of indicators.

[@tradertalkswebcasts]

Glad you like those details, and it's always my pleasure! ^CM

[@ronstewart2871]

Thanks Cam for the GREAT explanation of the MACD. I have been using it for years, without an understanding of how it works, I only knew that it is a great indicator, and supersedes Stochastics and other oscillator type indicators. Thanks!

[@tradertalkswebcasts]

Very glad you found additional value in my video! Thanks for watching, and I'll see you in the next one! ^CM

[@srikanths2671]

What is the recommended number of days to open a bullish position when the MACD crossover occurs?

[@tradertalkswebcasts]

As an educator, I don't recommend specific trade techniques or approaches, but it is common for traders to take the trade on the day of the crossover, or possibly on the day after. In any event, I hope this helps! ^CM

[@thisisbige7970]

I loved this session. We know more of these please :)! More macd strategies in combination with other studies such as ADX.

[@tradertalkswebcasts]

I'll add that to my list of future webcast ideas. Thanks! ^CM

[@srikanths2671]

@@tradertalkswebcastsIs there a webcast on this strategy?

[@jessmunzing6986]

I'm really liking the macD indicator, it's like i get it! one question thought, ,for example today KO the stock is going up according to pattern and candles, but why does macd D show its about to turn red, ? and is there another indicator that you think would help with this, i understand the ATR (which for KO is also pointing down. and i get the RSI which means if it is overbought or under. and as long it is in the middle, follow the pointing line to see the potential entry?

[@tradertalkswebcasts]

Happy to clarify! In brief, a candle on a 12-month chart incorporates only a single day into its construction, whereas the default MACD Histogram includes 26 days' worth of data, so the two can certainly diverge in behavior. As for a second indicator, some traders will combine an oscillator - like the MACD Histogram - with a trend indicator, such as, say, a Simple Moving Average. Of course, preferences for combinations can vary widely. In any event, thanks for watching, and I'll see you in the next one! ^CM

[@minazhassam9821]

well explained Cameron. thanks

[@tradertalkswebcasts]

You're welcome! ^CM

[@jessmunzing6986]

hello, question, is the crossover the bright red to dark red, or the dark red to green? and when it starts to go below the zero, would this be helpful touse for a long put?

[@tradertalkswebcasts]

Happy to clarify! A true "crossover" is a transition from green to red or from red to green, but some traders look for signals before those events, such as when the histogram changes from light red to dark red. And yes, some traders also might initiate bearish trades when the oscillator falls below the zero line (also commonly known as the "Signal Line.") I hope this helps, and thanks for watching! ^CM

[@jessmunzing6986]

@@tradertalkswebcasts got it. thanks! and does the crossover turn the day before or after the pivot?

[@YouMeg-q4r]

Good video but could you provide practical techniques based on your experience like does Lee B?

[@tradertalkswebcasts]

I always try to bring my own flavor to these educational presentations, but I also have to be careful to not introduce personal biases. I hope you find the balance helpful. In any event, see you in the next one! ^CM

[@sawmill123456]

you can just put those moving averages on your screen and get a similar result!

[@tradertalkswebcasts]

They're certainly related to the signals generated by the MACD, but not the same. And of course, no technical signal is ever a guarantee of performance on any given trade. In any event, thanks for watching! ^CM

[@ronstewart2871]

Sawmill123456: I tried doing the decisions on movement of the stock and it worked OK, but once I started using the MACD I found it to be much better, probably mostly because of the excellent visual you get from the indicator. Maybe do what I did. I tried the MA's and the MACD at the same time, and for sure the MACD worked better.