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Although I'm not a huge fan of technical analysis with the exclusive use of the MACD, it has proved to be an excellent indicator for a buy entry both on May 26 and July 6, 2020 (set with the parameters of the example in question).
After the downtrend of the last month, the main trendline has been tested again, becoming a concrete support on the daily timeframe.
A barrier was created around 1.298, also supported by the spinning top candle of 9 September.
The risk that this level will be used as a resistance in the next few days is not to be overlooked, although the confirmation of a new MACD buy signal and a likely weakness of the American economy, prompt me to opt for a buying position.
HOW TO USE this MACD strategy: when the MACD (the blue slow line) rises above the signal line (the short-term reactive orange line), the indicator gives a bullish signal, which suggests that the price of the asset is likely to experience upward momentum.
It is always important to be sure that it is not a false signal by checking other indicators and the correct movement of the trend.
Although I'm not a huge fan of technical analysis with the exclusive use of the MACD, it has proved to be an excellent indicator for a buy entry both on May 26 and July 6, 2020 (set with the parameters of the example in question).
After the downtrend of the last month, the main trendline has been tested again, becoming a concrete support on the daily timeframe.
A barrier was created around 1.298, also supported by the spinning top candle of 9 September.
The risk that this level will be used as a resistance in the next few days is not to be overlooked, although the confirmation of a new MACD buy signal and a likely weakness of the American economy, prompt me to opt for a buying position.
HOW TO USE this MACD strategy: when the MACD (the blue slow line) rises above the signal line (the short-term reactive orange line), the indicator gives a bullish signal, which suggests that the price of the asset is likely to experience upward momentum.
It is always important to be sure that it is not a false signal by checking other indicators and the correct movement of the trend.