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This video introduces the Impulse MACD indicator on Trading View, which is more effective than the old MACD. The video explains how MACD works, its limitations in range markets, and how to use the Impulse MACD to filter out range markets to find next level trade entries. The video also covers how to use the Impulse MACD in combination with volume-based support and resistance zones to generate accurate trade entries. The video suggests various ways to use the Impulse MACD as a primary or secondary entry confirmation to create a perfect strategy for individual traders.
Trading with the Impulse MACD on TradingView: A Revolutionary Indicator
– Introduction to the Impulse MACD
– Understanding How the Traditional MACD Works
– Limitations of the Traditional MACD Indicator
– Using the Impulse MACD for Trading Forex, Stocks, and Cryptocurrencies
– How to Add the Impulse MACD to Your Chart on TradingView
– Modifying the Style of the Impulse MACD
– Strategies for Trading with the Impulse MACD
– Combining the Impulse MACD with Other Technical Indicators
– Advantages of Using the Impulse MACD
– Conclusion
Introduction to the Impulse MACD
The Impulse MACD is a technical trading indicator that is revolutionizing the way traders use moving average convergence divergence (MACD) for trading Forex, stocks, and cryptocurrencies. While the traditional MACD has been around for years, the Impulse MACD goes above and beyond to filter out signals that can lead to low-quality trades.
In this article, we will delve into how the Impulse MACD works and explore strategies for incorporating it into your trading arsenal.
Understanding How the Traditional MACD Works
The MACD is a momentum oscillator that measures not only the speed but also the rise and fall of a stock’s price. It calculates the difference between an instrument’s 26 and 12-day exponential moving averages (EMAs) using closing prices of whatever period is measured on the MACD chart.
On the MACD chart, a 9-period EMA of the MACD itself is also plotted, which is referred to as the signal line. This line acts as a trigger for buy and sell decisions. The MACD is considered the faster line because the points plotted move more than the signal line. On the other hand, the signal line is considered the slower line.
The MACD histogram is a visual representation of the difference between the MACD and its 9-day EMA. The histogram is positive when the MACD is above its 9-day EMA, and negative when the MACD is below its 9-day EMA. The point on the histogram where momentum is zero is the zero line.
Limitations of the Traditional MACD Indicator
In trending market conditions, MACD signals can be quite accurate. However, market trends only occur 20% to 30% of the time. When there is a range in the market, which happens 70% to 80% of the time, this indicator produces a lot of low-quality signals.
Using the Impulse MACD for Trading Forex, Stocks, and Cryptocurrencies
The Impulse MACD is a modified MACD that filters out the values in a moving average range, thereby reducing the whip typical in a sideways market. When the price starts moving sideways, the histogram of the indicator and the line become flat. Therefore, traders can have full confidence that they should not be opening any trades during this time.
How to Add the Impulse MACD to Your Chart on TradingView
To add this script to the chart, navigate to the indicators menu, and in the search bar, type “Impulse MACD.” The one that you’re looking for is created by LazyBear. Once you’ve installed it on a chart, open its settings, and make some changes to the style.
Modifying the Style of the Impulse MACD
With the Impulse MACD, traders can modify the style according to their preferences to enhance their trading experience. The Impulse MACD is a versatile indicator with many customization options.
Strategies for Trading with the Impulse MACD
There are many ideas on how to use the Impulse MACD in technical analysis. One effective strategy is to combine it with volume-based support and resistance zones. This indicator, created by Tommy F1001, shows multi-time frame key levels of support and resistance that are based on volume.
Combining the Impulse MACD with Other Technical Indicators
Traders can combine the Impulse MACD with other technical indicators to create a more powerful trading strategy. For example, the Extreme Trend indicator can be used as a primary entry confirmation, while the Impulse MACD can be used as a secondary entry confirmation.
Advantages of Using the Impulse MACD
The Impulse MACD has several benefits, including:
– Able to filter out signals that lead to low-quality trades;
– Can produce accurate and early trade entries; and
– Versatile and customizable with many different strategies for trading Forex, stocks, and cryptocurrencies.
Conclusion
The Impulse MACD is a revolutionary technical indicator that provides a new approach to using the traditional MACD for trading Forex, stocks, and cryptocurrencies. With the ability to filter out low-quality signals, the Impulse MACD produces accurate and early trade entries that can lead to profitable trades. Traders can customize its style and combine it with other technical indicators to create a powerful trading strategy.
