Investors Trading Academy
The video discusses the MACD indicator, and how it has proven to work well in the forex market. The indicator helps identify trends and signals in the market, but it’s important to understand how it works before attempting to trade based on its signals. The video goes over the basics of MACD and uses a 60-minute EUR/USD chart as an example. The indicator uses a 12-period and 26-period moving average to calculate momentum and direction.
Introduction
– Introduction to MACD and its use in investing and trading
– The availability of resource materials for today’s class
Understanding the Term ‘Security’
– Defining the term ‘security’
– Clarifying that the class is not about any specific instrument
The Difference between Investing and Trading
– Understanding the difference between investing and trading
– The purpose of the class for both investors and traders
The Limitations of Technical Analysis
– Acknowledging the limitations of technical analysis
– The importance of not relying solely on indicators
Introducing the MACD Indicator
– The history and development of the MACD indicator
– Its use in both slow-paced and fast-paced markets
The Function of the MACD Indicator
– The function of the MACD indicator in discovering new trends and identifying the end of current trends
– The different methods and settings used by traders
Placing the MACD Indicator on your Trading Chart
– The location of the MACD indicator on a trading chart
– The importance of understanding the MACD indicator before trading with its signals
Understanding the Basics of MACD
– The use of a 12 period moving average to start the calculation of MACD
– The introduction of a second moving average, a 26 period moving average
MACD Histogram
– The MACD Histogram and its role in the MACD calculation
– The use of the Histogram to gauge momentum and identify potential changes in trends
Signal Line
– The Signal Line and its importance in trading with MACD
– The role of the Signal Line in generating buy and sell signals
Crossovers
– The significance of crossovers in MACD
– The importance of understanding the validity of crossovers and the correlation with price movements
Divergences
– The use of divergences in MACD to identify potential reversals in trends
– The different types of divergences and their interpretations
MACD Trading Strategies
– The use of MACD in different trading strategies
– Examples of trading strategies using MACD
Conclusion
– Recap of the importance and function of MACD
– The value of technical analysis when used in conjunction with other tools and analysis methods
