 |
| Happy Trading |
This is a post about the major signal generated by MACD technical indicator. As you know, the method I discuss here is called as 4 Hour MACD strategy by Mr. Phi;lip Nel.
The strategy consist of understanding MACD and moving average as well. Mr. Phillip has said that the heart of the strategy is to understand the market rhythm and MACD only provide about 10 percent of the overall trading decision.
Therefore, it is very important to know when the MACD generated a high possibility trading pattern.
Here is the list:
First, there are Round Top and Round Bottom. The easiest to spot. However, we need to wait the pattern to be developed. For an example, I will discuss about the RT (Round Top) signal. The green bars indicate that the price is going up trend. Now, I want you to put your finger to cover the red bars on your screen.
See? That is likely the peak of the up trend, and the price pulled back down afterwards. vice versa for the RB.
These are the complete list:
