A chat room I use while I’m trading has a MACD divergence guy in now and I wanted to know people’s thoughts. I don’t use it myself and have found some people saying that it looses more than it wins.
Wondering what everyone else’s experiences are?
A chat room I use while I’m trading has a MACD divergence guy in now and I wanted to know people’s thoughts. I don’t use it myself and have found some people saying that it looses more than it wins.
Wondering what everyone else’s experiences are?
I would not recommend trading divergence as the only indicator. I would look to confirm it with price action itself.
The MACD is one of the more reliable indicators yet it struggles to reach a success rate of 50%.
If you are going to use the MACD, you really need to read and study the book…“Technical Analysis - Power Tools for Active Investors” by the inventor of the MACD himself, Gerald Appel.
There is a lot more to the MACD than I have ever seen posted on this forum or any other forum.
From the demo video I saw it looked quite simple. I don’t generally rely on indicators like MACD myself but I was intrigued because of how simple it appeared to be.
I think this may be the correct approach as I have seen divergences take a long time to result in a trend change… and mistakes can be made…
I like to see a reversal pattern in the price bars or candles before making an entry.
That being said… a macd divergence can serve as a very useful warning of an impending change.
To me, a three point macd divergence is a strong indication… however… macd divergence does not always appear in a trend change… similarly with other oscillator divergences, none of them is 100 percent.
i trade on naked chart
a lot of time i can buy when the stochastic or macd is overbought and sell when is oversold and overall i had been always much profitable than other traders i know with a lot of lines and colors on their chart
With MACD the right approach seems to be having a confluence over lower and higher timeframes. A negative divergence on the 4H would be ignored if there was a positive divergence on the 1H… Signals only work when common sense is also applied.
if you have stochastics and macd on chart… I would think that is not a naked chart…
i don’t have macd and stoch on my chart but sometimes i look at they, not to adjust my trades but only for curiosity
well, keep in mind that when stoch is in overbought or oversold… does not always mean that price is about to change direction
is what i said