Mastering MACD: The Best Settings & Strategies for Profitable Swing Trading

Hey there! In today’s video, we're gonna talk about the Moving Average Convergence Divergence (MACD) - a super popular trading indicator that lots of traders use. But before we dive into MACD, we gotta first understand how other technical indicators like moving averages or the exponential moving average work and the issues that come with using them while trading.

Once we've got that down, we can move onto the MACD indicator. Basically, the MACD is based on two moving averages - a fast one and a slow one - and it plots the difference between the two on a chart. Traders use this info to spot trends, shifts in momentum, and even potential buy or sell signals.

So, how do you use the MACD indicator? Well, one way is to look for crossovers between the MACD line and the signal line. If the MACD line crosses above the signal line, that's a bullish trend, while a crossover below the signal line could be a bearish trend.

Another way to use the MACD is to look for divergences between the MACD line and the price action of an asset. For example, if an asset's price is going up but the MACD is going down, that could mean a trend reversal. Let us know in the comments if you wanna learn more about MACD divergence and how to use it!

Of course, it's important to remember that the MACD isn't foolproof. You should always use it alongside other forms of analysis to make smart trading decisions.

So, if you wanna get better at trading and have an ace up your sleeve, you should totally grab your coffee to master trading the MACD indicator! It's a sweet tool that can help you spot trend reversals and signals for buying and selling. Trust me, it's super useful and can definitely help you make better trading decisions.
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00:00 Let's begin
00:35 Problem with using 12EMA and 26EMA
02:17 Can Moving Average Convergence Divergence (MACD) solve for the lag?
04:37 How to trade using Moving Average Convergence Divergence (MACD)?
06:28 How accurate is MACD trading?
07:16 Summarising everything in a nutshell
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👋 Say hello:

[swastikstudy]

MACD works really well on 3 minute charts, i use it with mean reversion model

[robinmgupta]

In the last example where you mentioned that MACD didnt work, MACD actually worked by giving a signal much earlier when it moves below 0 before the crossover, which means that the market will go bearish.

[JoP-odsy]

Thank you Prateek great explanation! with the heart of a teacher I finally understand MACD THANK YOU

[asabafredprince]

I really wanna appreciate you sir...your teaching is really helping me learn about trading

[navketan]

My experience is(For early reversal trading entry)---If 3 different settings of MACD(say macd 3, 10, 9--macd 6, 13, 9--macd 12, 26, 9) show that momentum on all 3 settings has reversed(as evidenced by heights of histograms) say on 15 minute charts, THEN VERY HIGH CHANCE THAT TREND HAS INDEED REVERSED.Your comments/wisdom is invited.

[benardkipkorir]

You have done magnificent job weldon, i am now understanding forex as the days goes by thank you si❤!

[liome]

Thank sir.
But you saying that we should change the macd crossing line 12/26 to 9/26?

[ZainabMuhammad-oikx]

I don't understand the EMA please can you explain it for me and what's it...

[anupmosun]

Good to see u MJ sir, after many years

[luckyskivvy]

I use it for intraday trading to gauge trend direction. Also get a sense of how long the trend will last depending on how far apart the lines are.

[TBradFashionModel]

I like to see a trend cross up when MACD is above zeroline in the histogram or...just about crossing....

[SanathNatural]

You are a wonderful teacher. Well-explained videos and appreciated. A small humble request for you. When you use your native language if you can drop the English translation of those words much appreciated. Because I feel those words are very important because native language comes automatically with your Gut Feeling of that specific point. Thanks

[davidibiyemi]

Fantabulous, thank you very much Sir for this enlightenment

[liakella]

Thank you the knowledge is very helpful for beginners like me

[simonleung]

So clearly presented as usual.. keep up the good work!! Couldn’t wait to watch more videos from the team!!

[JQUICK]

Is "Copy Trading" a good thing for beginners? Or anyone at all? Thank You!

[eitan]

great explanation and editing
Thanks!

[YOGESHSONAVIYA]

Nice learn to help direction of market....👍

[financeering]

I believe the red line at 5:49 in MACD & not 9EMA. Correct me if I am wrong
so MACD went down & crossed 9EMA

[ashleyjoan]

Thank you Lord Jesus for the gift of life and blessings to me and my family $14, 120.47 weekly profit Our lord Jesus have lifted up my Life!!!🙏❤️❤️