How to Use the MACD Indicator in Fixed Time Trading on Olymp Trade Platform

 


Introduction: 

The MACD indicator is one of the most popular indicators used by forex and fixed time traders. MACD stands for Moving Average Convergence Divergence. The MACD indicator is a trend-following momentum indicator that shows the relationship between two moving averages of prices. The MACD indicator can be used to identify changes in the direction and strength of a price trend. In this blog post, we will show you how to use the MACD indicator in fixed time trading on the Olymp Trade platform.

How to Use the MACD Indicator in Fixed Time Trading:

The MACD indicator is comprised of three components:

1) the macd line,

2) the signal line, and

3) the histogram.

The macd line is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. The signal line is a 9-period EMA of the macd line. The histogram is represented by bars that indicate the distance between the macd line and signal line.

On most trading platforms, including Olymp Trade,MACD lines are plotted above or below the price chart.

The standard settings for the MACD indicator are 12,26,9. These settings can be adjusted to suit your trading style and time frame.

The interpretation of MACD is based on three factors: crossovers, divergences, and breakouts. We will discuss each of these in turn.

Crossovers occur when the macd line crosses above or below the signal line. A bullish crossover occurs when the macd line crosses above the signal line. This is considered a buy signal. A bearish crossover occurs when the macd line crosses below the signal line. This is considered a sell signal.

Divergences occur when the price makes a new high or low but MACD does not confirm this move with a new high or low of its own. A bullish divergence occurs when price makes a new low but MACD does not confirm this move with a new low of its own. This is considered a buy signal. A bearish divergence occurs when price makes a new high but MACD does not confirm this move with a new high of its own . This is considered as sell signal .

Conclusion: 

The MACD indicator can be used to identify changes in the direction and strength of a price trend. Crossovers, divergences, and breakouts are three important factor to consider when using MACD in your trading strategy.. Knowing how to correctly interpret these signals will help you make better informed trading decisions and improve your trading results over time..


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