I tried to install the MACD indicator on my charts, but am really confused as to what I’m seeing. I don’t see any moving average lines. All I see is a series of vertical bars that increase/decrease in size and a dashed line going above/below and thru the histogram lines. There is no horizontal “0” line thru which I can see a + or- move. Since there does not appear to be any moving averages that I can look at, I won’t be able see any crossovers.
I believe there must be some settings that I can use to see these MAs’. Does anyone have any ideas?
Hi, The histogram version of the MACD shows the same info. Your understanding of Market energy flow, and strength, will be much more valuable to your trading if you learn how to view the MACD in its many forms. Here is a color-coded screenshot of the histogram MACD below the chart - and its MA-only equivalent, on the price chart. Spend some time comparing them. Soon, you’ll ‘suddenly see’ how they are showing you the same Market clues.
there is no ZERO-line like you’d expect on a graph. the “reference” line (or zero line if you want) is ONE of the TWO wavy lines, the other one is the other line, so the crossovers are where the two lines corss each other. the bars show the actual distance between the two lines, so if the bars are hanging down below horizontal then that corresponds to when the two lines are crossed with B below A, and if the bars are sitting above horizontal that’s when the lines are crossed iwth B above A. the point where the bars disappear is the point where the two lines cross.
go to investopedia.com and learn about MACD, and then do a google search for “how to interpret MACD”, and read about 5 or 7 different links / articles so that you truly “get it”
Thanks very much for posting. Are the three wavy lines in the chart of Moving Averages that have different values?
The MACD in the above chart is the same one that I see on my chart. What is confusing though is the MACD that is discussed in the pipsology school has two distinct MAS’
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The red line is a 13 SMA, and the green lines are the 50 SMA High\Low. The 2 MAs are the 13 and 50 - shown with 3 lines
Later on, you’ll see why that is useful to the trader… But, ‘1st things first’ - there are many layers to the MACD ‘onion’; and you’re just starting at the outside layer. The Baby Pips School has given you the basic information and tools for understanding this Market. Now, to thoroughly understand the Market; you’ll need to apply the tools on the charts, and let your mind process them piece-by-piece (with each piece building on the previous one). In this next stage of learning, Information-Gathering (1st Stage) needs to be replaced with Visual Strategies (2nd Stage) involving comparison\contrast, and moving on to Evaluation Strategies.
Unfortunately, many traders don’t make this mental strategic transition, and quit - usually after losing lots of time and money. I have a twist of the quote: “How do you eat an elephant? One bite at a time.” I say: “How do you digest the Market? One serving at a time.” Through comparison\contrast we learn what works and what doesn’t. Our minds are at their best in this kind of activity. It is my favorite Learning Stage. If you’re up for this way of thinking; I encourage you to keep going. You’ll have a blast and be quite successful. If this sounds like you wouldn’t enjoy the process, now; then stop, and only resume when you find yourself looking forward to the fun of it…
