If you're still looking at golden crosses to buy and death crosses to sell, then you know nothing about the power of MACD. MACD is known as the king of technical indicators, but 90% of people only stay at the most basic levels of golden crosses, death crosses, and divergences. As a result, they get repeatedly slapped in the face by the market, becoming a reverse indicator for the main forces to harvest accurately. Today, this video will completely overturn your understanding of MACD. I will explain the 9 top practical uses of MACD that are the most core and can significantly improve your chances of winning, all at once, so you can truly learn to use it to accurately enter the market and escape at the peak. Before we start, please take 10 seconds to remember the essence of MACD: it is not a crystal ball predicting the future, but a tool for judging the current market situation. It has two lines: DIF (fast line) and DEA (slow line), and the red and green bars represent the strength of bulls and bears, with the 0 line as the boundary between bulls and bears. Below are the 10 specific practical uses of MACD that teach you when to attack and when to retreat. 1. Golden cross above the 0 line: When the fast line crosses above the slow line while above the 0 line, it is called a golden cross. But only a golden cross above the 0 line is a true golden signal. It indicates that the bulls are gathering at a high position, and there is a high probability that the market will surge again. It is an excellent opportunity for short-term momentum trading. 2. Death cross below the 0 line: When the fast line crosses below the slow line while below the 0 line, it is called a death cross. When MACD shows a death cross below the 0 line, don't hesitate; this is a clear signal to add to your short position. The market is likely to fall further, run as fast as you can. 3. Golden cross below the 0 line: Some people get excited upon seeing a golden cross, thinking a reversal is coming. Wrong! A golden cross below the 0 line is 90% of the time a false signal during a downtrend. A true reversal requires both lines to get infinitely close to the 0 line before a golden cross occurs. 4. Repeatedly entangled above the 0 line: When you see this kind of up-and-down movement, are you scared? But true experts know that this is a strong signal of the main force washing the plate, indicating that the bulls firmly control the market. No matter how hard the bears try, they can't push it down, and a new surge is ready to start. If it is entangled below the 0 line, don't naively think it is building a bottom; this is the bulls' last struggle, but they are fundamentally powerless. The more they struggle, the weaker they become. At this time, patience is golden; don't attempt to catch the bottom. 5. Look at the length of the red and green bars: Remember the following mnemonic: When the red bar lengthens, the bulls are aggressively attacking; when the red bar shortens, the bulls are exhausted. When the green bar lengthens, the bears are smashing down; when the green bar shortens, the bears are retreating. Learn to observe the bars, and you will be one step ahead compared to looking at golden and death crosses. 6. In a downtrend, when both lines are stuck together and the green bars lengthen: Seeing both lines sticking together, thinking there will be a rebound, first look at the green bars. If the green bars do not shorten but lengthen, it indicates that the bears are still not giving up. This is a trap for bulls, ready for a secondary drop at any moment. 7. In an uptrend, when both lines are stuck together and the red bars lengthen: In an uptrend, when both lines stick together while the red bars are secretly lengthening, this is an excellent signal of the main force washing the plate. After the washing is done, there will be new highs. Don't let short-term fluctuations scare you away. 8. When the green bar disappears and the red bar appears: When you see the green bar completely disappear and the first small red bar just emerges, but the K-line may still be adjusting, don't hesitate; prepare to enter. This indicates that the bears' strength is exhausted and the bulls are starting to gather, with a reversal surge imminent. 9. When the red bar disappears and the green bar appears: When you see the red bar disappear and the first small green bar appears, even if the K-line is still making new highs, it may be time to leave. This is a signal of the bulls' weakening strength, and the market may adjust at any moment, so exit in time to avoid standing guard at high positions. After watching these 9 uses, don't you feel like your understanding of MACD has improved several levels? However, I must pour a bucket of cold water on you: if you think that relying solely on these 10 techniques will allow you to make stable profits in the market, then you've fallen into another trap. When MACD shows a golden cross above the 0 line, but the K-line pattern shows an overcast cloud cover, who should you listen to? When MACD shows a bottom divergence, but the price breaks below an important long-term support level, which one should you trust? Even if all signals resonate perfectly, how much position should you take for this trade, and where should you set your stop loss? Therefore, the real breakthrough in trading ability is never about how many strategies and techniques you have collected, but about integrating market trends, key positions, K-line patterns, indicator signals, and capital management into a logically coherent whole. This process is far more complex than learning any single technique, but it is also much more valuable. This is the true difference between being an amateur hobbyist and a professional trader.

View Original
post-image
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin