TiborVrbovsky

How to Simply Spot MACD Trend and Benefit from Histogram.

Education
BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
Welcome back to my another Educational post.

I really do appreciate all support I got in my previous Educational material about MACD , so I am bringing you some more useful Education simply explained about MACD.

As I was doing my next Bitcoin Technical Analysis , I was looking a bit more into MACD and thought, I would explain to you a little bit more about how MACD works.

How trends are creating, when they start or end, what to consider as support or ressistance on fast lane, how to benefit from histogram.

Lets start with Histogram.

Its really all about those commas, lets start by splitting the histogram to two sides.

Positive - upper, when histogram is positive, fast lane is on buy signal.
Negative - lower, when histogram is negative, fast lane is on sell signal.

In simple histogram shows the overall volume which is in dominance, for example long positive comma represent strong buying volume in one specific timeframe.

Histogram also has his own support and ressistance levels.
You can also consider Histogram as wave indicator.

At Positive histogram, the tallest comma represent ressistance.
You can find ressistance when the next comma in uptrend is lower than previous, forming downtrend.
You can also find support at Positive histogram, basically when in downtrend is one comma taller than previous one, uptrend is being formed.

At Negative histogram its the same thing, just rotated.
So the tallest histogram comma represent that support was found forming uptrend.
When a next comma is taller than previous one, it means ressistance was found forming downtrend.

Lets follow it up by fast (blue) and slow (orange) lane on macd .

Fast lane is known as signal line.
When is fast lane is above slow lane, this gives a buy signal and also the slow lane can be considered as support, and as you know each succesful test lead the price higher.

When fast is lane is below slow lane, this gives a sell signal and also the slow lane lane can be considered as ressistance, and as you know each unsuccesful test lead price lower.

MACD and Histogram are pretty close connected together as they are giving similiar signals, making signal easier to spot together.

When MACD lanes are high is harder for them to cross and give buy signal as increasing demand is required, same is valid for low or oversold macd , its easier for low macd lane to give buy signal as less demand is required.

I think thats all important information about MACD for now, everything else should be explained on the chart with the help of Legend.

Hope you liked this Education about MACD and more close look on histogram and his purpose. None of this contect was copied, and its all written by me.

Hope I havent missed anything important, if yes point it in comments.

If I have learned you anything that you are able to benefit from and be a bit better trader, let me know by smashing that agree button, each like is very appreciated as I am doing this for FREE and it took me a LOT of time, Thanks a Lot!
Comment: Clean comparison

Comments

I should give it a rest...
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Thank you! Your educational classes are very welcome.
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TiborVrbovsky RichArm58
@RichArm58, Thanks! I will try to keep them up!
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