Discussion in 'Technical Analysis' started by wanderer, Feb 6, 2005.

  1. Whats the best way to use MACD for trading profits ?

    Any ideas ??
  2. Truff


    divergences!! Other ways to use MACD tend to be lagging
  3. yep, divergences are good.
  4. MACD "Zero" line crosses with certain faster MACD settings (way quicker then 12,26,9) are very good and significant signals.
  5. The best MACD trades are when the MACD is negative and then makes a strong upward break across it's signal line.

    Works best on a 60 minute chart, methinks
  6. What is the buy signal usually used for trading divergences?

    Sometimes divergences can be for 2 - 3 times to 4 times before the price actually shoots up.
  7. tradertt,

    Exactly why you should use a faster MACD and WAIT for a "zero" line break to enter your trade. You have to know how your MACD behaves in chop or trending days (there is a difference), and use this to your advantage.
  8. I use 5,13,6 for my MACD settings. I use it on multiple time frames.
  9. Dogfish


    combine it with DMI to give you the more delicate changes and it works a treat
  10. you ought to summon MACDaddy and ask him.
    #10     Feb 8, 2005