Stock Market Trading Strategy with "MACD" Technical Indicator #5


"MACD" ( Moving Average Convergence Divergence) is a very popular Technical Indicator and it is used in Technical analysis from very long time. We can Predict the strength,Direction and Momentum of a stock with the use of MACD Indicator.

In this image it is clearly shown that MACD indicator is made by three property.
1.Fast MA Period.
2.Slow MA Period.
3.Signal Period.

The shown setting is used from very old time and it is one of the best setting for MACD.

Settings can be changed by manually if required. Except this three settings, Some histogram diagram also available with MACD indicator.




There are lots of predication can be done by MACD Technical Indicators. One of the best prediction is when MACD line cross the Signal line and move upside direction then buy the stock.

In similar way when MACD line cross the signal line and move down side then sell the stock.

In histogram when red candle starts forming then it is the signal that selling signal will come very soon so we have to prepared for selling accordingly. In the same way why green candle start forming then it is the signal that buying signal will come soon and we have to prepared for buying accordingly.



   

Comments

  1. Ritesh BansalSeptember 29, 2018 at 10:59 PM

    Hello sir
    I saw your video in you yube of OTM is 0 on the day of expiry of July/2017...I want to ask this technique is applicable in Bank nifty also? PLEAE guide me

    ReplyDelete
  2. Ritesh BansalSeptember 29, 2018 at 11:14 PM

    Hello sir
    I saw your video in you yube of OTM is 0 on the day of expiry of July/2017...I want to ask this technique is applicable in Bank nifty also? PLEAE guide me

    ReplyDelete
  3. UnknownJanuary 27, 2019 at 11:32 PM

    Thank you for the post and it is very interesting to read. We can also enroll our name in such a good place like Share Market Classes in Chennai for the bright future.

    ReplyDelete

Post a Comment

Popular posts from this blog

Share Market Trading Strategy, "Money Management Technique" #7

Image
Share market is the biggest platform for business, for investing money very transparently. Share or Stock market is a very good way to invest money and make money more from existing. But before invest money at any where everyone should plan their "Money Management". Everyone should plan that how to invest the money in a systematic way. For a example, Suppose some one want to start a business by giving his car in rental. Suppose he have 10 lakh money. He buy a car with 10 lakh. He invest his full money. Suppose after few days later his car having a major accident and he need to repair his car urgently to run the business again but he don't have sufficient money to repair the car, then what will happen? Where he will stop his business for long time or he take some loan from anyone to repair his car. This is the reason everyone should plan their money with second plan. In share market also everyone should make a proper planning of their investment. like, 1. Never...
Read more

Stock Market Strategy with "Moving Average" Technical Indicator #4

Image
"Moving Average" is very popular and effective technical indicator to analyze the trend of a stock. This is very good technical indicator for smooth price action and for trading signals also. We can easily get understand that from where we have to buy a stock and from where we have to sell of a stock. There are many kind of moving average indicators are available like, 1.Simple Moving Average. 2.Exponential Moving Average. 3.Variable Moving Average. 4.Welles Wilder Moving Average. etc, Among all of the Moving Average Technical Indicator, Exponential Moving Average is one of the best Indicator. There are custom Settings we can do as per our trading strategy. We have select the Period of the Moving average.  This is one of the best setting for all kind of trade. Moving average setting is very important in case of trading strategy, it will depend upon individual that how smooth signals (Buying & Selling) they required in their trade. If anyone want so many...
Read more