so in this video I'm gonna show you how
you can incorporate the macd into your
trading strategy going along with that
unedited video that I just did marking
up support and resistance and
determining which direction the trend is
actually going and always trading with
the trend so no editing again let's get
into the charts I'm going to show you
two indicators that you can use on top
of all of that information that I gave
you previously that's going to help you
dramatically improve your trading so
looking at Australian dollar US Dollar
on a five minute time frame the
indicators that I want you to put up is
the macd and the TMA overlay both of
those are going to be linked in the
description you could just search them
they're in the indicators tab the TMA
overlay is something that I made it's
free for everybody
basically it gives you multiple moving
averages and signals of engulfing
candles so what I have on here the white
line is the 21 moving average the green
line is the 50 moving average and the
red line is the 200 moving average these
are all smoothed moving averages I just
prefer them because it works well on
Australian dollar US dollar so as you
see price trading either above or below
the 200 that's the short-term Trend that
you're looking at so if it's trading
above the 200 always keeping in mind the
higher time frame Trend but if it's
trading above the 200 and all of the
moving averages start lining up and you
are capable of understanding Market
structure and higher highs and higher
lows basically a staircase pattern the
simplest way that I can explain this
instead of perfect higher highs and
higher lows just like squint your eyes
and see oh it's going in an uptrend it's
kind of making a staircase pattern I
could probably climb up that or I climb
down that so you can see that we're
making higher highs and higher lows but
as we start climbing Above This range
sitting above the 200 you can now see
that we are breaking previous highs all
we're looking for is breaking of
previous highs these liquidity grabs
don't matter I want you to focus on the
higher highs so once you get these
higher highs you can draw areas of
resistance on them right so like
previously
if you drag this a little bit lower so
this was the high right and then it
broke that so now that's the high
these zones you know again they're not
definitive lines definitive zones just
leave it where it encompasses a lot of
Wicks and a lot of the the mess so as it
breaks that and comes down to retest it
if you're thinking that oh man this is
probably I don't know a Divergence or a
reversal is probably going to start
trading below the 200 moving average
again
what I want you to do is now look at the
macd the macd is the moving average
convergence and Divergence right yeah
and so you can see on the macd you get
these spouts of bullish and spouts of
bearish
and as long as your price is moving up
and you think that it's going to use
this as a level of support and bounce up
what I want you to do is make sure that
your macd is red and losing momentum you
don't want it to be down here while it's
showing bullish that's a bad signal
you're not going to take those ever so
as you're getting to this level you see
that your macd is red and is getting
less red more burgundy or whatever
colors you want to choose at that point
that's when you can
um
that's when you can start looking at
getting into positions right big
engulfing candles or some sort of doji I
made a video about you know all the
candle stick formations they also have
indicators for that so you can you know
pick and choose what you want
but if you're looking for a swing and it
potentially to make a higher high in an
uptrend you want that macd to be down
and losing momentum it's very simple and
it helps me stay out of a lot of Trades
because sometimes I'll see price
structure because I don't have all of my
indicators up for whatever reason or I'm
on my phone
and I see a low being formed and I'm
like cool I want to short it and then I
see that you know the macd is
red and then Crossing up well okay I
should go in a long position this is
going to be a continuation
so these types of things are really
going to help you when you're
trading with the trend right that's
always the rule of thumb trade with the
trend and you'll win like 80 percent of
the time price continues in the
direction that price has been going
most of the time so use the macd use the
moving averages use the lower time frame
but always mark up on the higher time
frame if you haven't seen that previous
video that I'm talking about you can
watch it right here thank you so much
for joining me today I hope you learned
something I hope you got some value out
of this content make sure you like And
subscribe on your way out and we will
see you in the next video