MACD Divergence is the convergence and divergence of price and indicator. I believe that the divergence signal is one of the strongest entry signals. However, you need to understand in which direction you can buy and in which to sell.
There are only two golden rules to become a stable earning and profitable trader:
- Risk management
- Money Management
No other strategy/tactics will give you profit to your deposit. My experience shows that no any strategy found on the internet, offers risk management within. Basically they offer martingale money management strategy, where stop-loss is not used at all. In other words, if you take a random strategy or a signal from the Internet and use it together with the right risk management, the trading will be profitable.
You need to focus on the process, not on the result. Money will come when the process of finding an entry and calculating risk will be more important than earning money or beautiful charts or 95% of profitable trades. To learn to think by probabilities mean to use the opportunity to enter “here and now”, otherwise in a minute there will be an opportunity that has already gone.
I advise you to take it immediately for an axiom: no one can predict price behavior in the market. Each trade can be both: profitable and unprofitable before entering market. This means that you need to make a decision in total uncertainty.
The stochastic oscillator and the moving average convergence divergence (MACD) are two indicators that work well together.
The stochastic oscillator compares a stock’s closing price to its price range over a period of time. Its K line indicates the number of time periods, and its D line is the moving average of the K line. When the K line drops below 20, the stock is oversold, and it indicates a buying signal. If the K peaks just below 100 then retreats, the stock should be sold before the value drops below 80. And generally, when the K value rises above the D, it’s a buy signal as long as the values are below 80. If they are higher than 80, the security is overbought.
MACD indicates price trends and direction. Subtract a security’s 26-day exponential moving average from its 12-day moving average to create an oscillating indicator value. The trigger line is the nine-day EMA.
If MACD value is higher than the nine-day EMA, it’s a bullish moving average crossover. A bullish signal occurs when a faster moving average crosses above a slower moving average, creating market momentum and signaling more price increases.
For the first time in Estonia there will be a meeting of local traders in the format of real LIVE trading actions!
In place will be the most successful traders in their field and with their personal and unique trading strategies. We all will trade stocks NYSE, ForEx, cryptocurrency. Everything will happen in a friendly atmosphere, all transactions and also everything that happens will be broadcast LIVE (facebook, google)! We will analyze ideas, patterns, trends and much more. Everyone will tell/explain to others something interesting about their strategy, patterns, risk management and much more. We will discuss the technical and fundamental current situation on the market, will open trades in real time and earn a lot of money!
In addition, we will communicate a lot with other traders in chat and also eat a lot and properly, take a sauna and much more.
If you are also a successful trader and want to get into our crowd of the best traders - write, call.
Here is some photos from this meeting:
Wish you all big profits!