IA TA Tuesdays(InvestAnswers Technical Analysis Tuesday)
Featuring IA TA Tuesdays – MACD Secrets featuring Ethereum Ethereum is the community-run technology powering the cryptocurrency, ether (ETH) and thousands of decentralized applications.Learn more, Snowflake, Facebook, TradeDesk and QuantumScape.
The opinions expressed in the video are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry.
0:00 Introduction – Math, Money, Freedom
0:20 Does TA Predict the Future? Doesn’t predict the future – it Identifies patterns. Period. It is a rearview mirror ie a lagging indicator. Awesome for affirmation
1:00 Moving Average Convergence Divergence (MACD) momentum indicator that shows the relationship between 2 moving averages MACD is 12-period EMA less the 26-period EMA ie longer one from the shorter one
1:30 3 elements: Effective Momentum Indicator (ie buy & sell signal when two lines cross)
MACD 12 EMA
Signal 26 EMA (often breached by MACD)
2:50 REMEMBER: Draw trend lines! Histogram – delta between lines Interaction between two lines is most important.
3:00 Timeframe Best to use MACD for daily timeframes. Confirm with weekly.
3:20 MACD – Uptrends vs Downtrends MACD Line – Longline is above zero line it is Bullish (Green histogram) When MACD line is below zero line it is Bearish (Red histogram)
4:00 MACD – Crossovers When MACD Crosses Above Signal Line = Buy signal When MACD Crosses Below Signal Line = Sell signal
4:20 Bullish Divergence Price trend going DOWN MACD trend going UP This can mean a Bullish reversal is coming esp if oversold – this works real well when combined with support and resistance
5:00 Bearish Divergence Price trend going UP MACD trend going DOWN This can mean a Bearish reversal is coming esp if overbought – this works real well when combined with support and resistance
5:10 MACD Charts
16:40 The Trade Desk
18:00 Conclusion Pros and Cons Works best in strong trending markets Shows overbought and oversold conditions Great for affirming entry signals Tune in for my RSI MACD video next
Coming Soon: RSI and MACD