Shou Eiko's Ascensionism ~ Video: Why Do You Use MACD? ~
Hello everyone. This is Kirameki Chartis and Akiko Shiro.
This year is coming to an end as well. It has been getting colder day by day, but I hope you are not feeling unwell?
Influenza and other illnesses seem to be circulating, so please take care, everyone.
Now, this time I have answered the question, "Why do we use MACD?"
Among the many indicators, everyone has their own preference, but I personally love MACD.
I talked about the reasons for that.
First, among indicators, there are those called "trend-type" displayed at the top of the chart, and those called "oscillator-type."
Trend-type indicators include moving averages and the Ichimoku Cloud, which tell you the direction of price.
Oscillator-type indicators include things like Stochastic and RSI. These indicate trading timing and whether the market is overbought or oversold.
MACD has characteristics of both trend-type and oscillator-type, so I use MACD.
When looking at trends with MACD, the important part is the zero line in the middle.
If above the zero line, it indicates an uptrend; if below, a downtrend.
When used as an oscillator-type, we look for trading timing at the moment the MACD and the signal cross.
In addition, whether the signal crosses the zero line or not is also important.
If the MACD crosses below the zero line but the signal does not cross, and both rise, you can consider it a buying timing.
Also, to know the timing, we look at the histogram as well.
When the rising red bars reach their peak and start to fall, that is also a timing for buying or selling.
In the video we discuss these points using charts, so please take a look.
I post my daily trades and methods on my blog.
Blog is here → https://ameblo.jp/bikabubikabu/