Understanding MACD

Kamlesh Rajpal
A free video tutorial from Kamlesh Rajpal
Natural Teacher Life & Business Coach Stock Trading Trainer
3.8 instructor rating • 5 courses • 2,747 students

Lecture description

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Technical Analysis Using Indicators For Stock Options Forex

Learn How Technical Analysis Using Indicators Shows You Stock / Options Or Forex Price Movement

01:29:02 of on-demand video • Updated November 2020

  • Learners will be able to use many indicators to understand price-action confidently and put them to use for their trading stocks, cryptocurrencies or forex.
English [Auto] Hello friends welcome back. So in this lecture we'll understand Magda indicator. It's moving averages and diversion. And let us blot Magda on our word graph not so we go to indicators and we take Magda here it is. So we just typed Magda and you take. And then now on this graph you have Maggie deep looked at and you have said it. Now how does my D work for Mike D. Nothing but two moving averages which is this to the Blue Line and the orange line on some platforms. This shows us the red line and one one might when the blue line crosses the red line. The price follows the blue line. So basically you see that the blue line has crossed the orange line and it went downwards and this is where the price fell correct. So the price fell. Now Magdi is we call it a bit lazy indicator or the confirmation indicator that means it actually conforms after a while that yes the prices did happen. Right. So it went down and we spoke at Magna lines have crossed now hence the price is definitely going to fall. So at this point we do not know where the price is going. And then is going up. Right. And at this very point you can see that RSI is coming down and after RSA came down which is here to take him down here at this point you see that Magdy has not crossed yet. Right. So that is where we currently Z. It crosses after a while thus confirming the direction. Right. So it's called Confirmation indicator but it confirms the direction after a while. Right. And once this crosses you know price will then fall. And at this point Maggie is crossed again. So you know that the price will now go up. So you see at this point it actually crossed and from here the price went down again. All right. And then it went badly for a while. This shows indecisiveness of the market. The market is not decided and then price follows the blue line and the blue line went down again and the price also went down again here. Right. So to sell you understand Magda and these two regions of the Magda are showing you that overall the market is bullish or bearish. So you can see the centrepiece line here. And then you have bonds above the central line and below the line histogram basically and the possible means the market is going to be bullish and this is bearish. Right. But that is not what we are actually looking at using Maggie. What will what we are looking at is we use it to get us together. So when hit our asset starts moving up I want Magdi to confirm the direction. So after a while you see that my dig also crosses over and conforms to the Blue Line as cross to Orange Line up words. So the price is going to go up and then from there for quite a while. Price does go up right. So if we look at this and put a trade somewhere here we will actually make a profit on our long trade. Now what happens is that because we do not want to just depend on one indicator we use a few of them together and to form us the direction. All right. So that explains Magda. Now you notice that for us and Magda I'm not changing the default but I Motors for example for Magda usually the default parameters are nine 26. That means one of them is a nine day moving average and one is 26. So here is 21 26. So one of those at twelve the moving average one is 26. Right. So just go the default parameters. All right. So that is Magda. Now let's look at another indicator in the next section.