MACD crossover creating trend against 200 moving average

MushinT

MushinT

Last week I noticed this movement, where we have the MACD crossing which could indicate an increase in the price, but this movement would be against the moving average of 200, and I thought, this could create a consolidation, or the famous range. And that's what happened. Has anyone observed this or know of studies on this case? I would like to understand more.

Normally I think a market with consolidated price is likely to happen when the MACD lines are close to the zero level.

I really like MACD, it has been in my studies for a long time and has made me more consistent in my gains.

I'm thinking about creating a spreadsheet and collecting data on this same pattern to see the probability of success in these moments when they repeat again. Thank you for your attention!


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Simply remove all those MA, and MACD lines.

Because those lines are confusing & useless.

The market moves in various manner/fashion/characteristics/behavior.
That's why those lines wouldn't help.

But if you read the trading books, they would recommend you to
add more lines, more indicators, more rectangles, more rays, more butterflies ....
 
First off I'll say upfront I don't use MA's of any kind or any length.

But if I did, the length I would use would have to make sense for the timeframe.

200 MA on 1 hour chart equals 8.333 trading days for a market that trades 24 hours a day.
I don't know if that is the case for above chart?

Multiples of 12 or 24 would be more appropriate 48, 72, etc (192 being closest to 200).

As for MACD it kinda does the work of multiple MA's already so I'd go with that and forget the MA's, but then again the only indicator I ever use, to assist in finding trade setups, is a simple 12 period ROC - Rate of Change, which just shows the actual change difference (not averaged in any way) over time.

HTH
 
The MACD is essentially just two moving average lines and you’re plotting their crossovers. My recommendation is that you should use just two moving averages and experiment with crossovers. You’ll learn a lot just comparing them visually to past action.
 
I use MACD to choose my entry points.
But I use the "histogram" to see the left hand crosses.
(Stockcharts.com breaks that out)
Start at the shortest time frame, then zoom out to see if the same cross exists on the monthly, or even quarterly.
In other words, get the maximum wind at your back.
But I'm too old to scalp or day trade.
All my holding periods are now one year + one day (LTCG in U.S.)
The knowledge is out there, just let it in. (hat tip to Jesse Stone)
 
Last edited:
maxinger said:
Basta remover todas as linhas MA e MACD.

Porque essas linhas são confusas e inúteis.

O mercado se move de diversas maneiras/modas/características/comportamentos.
É por isso que essas linhas não ajudariam.

Mas se você ler os livros de negociação, eles recomendariam que você
adicione mais linhas, mais indicadores, mais retângulos, mais raios, mais borboletas ....
More...

Olá, obrigado pela resposta, tenho uma planilha com negociações e elas são muito baseadas no MACD, eu uso o MACD para encontrar uma tendência como a que apareceu para compra, e aí procuraria compras no menor tempo frame procurando padrões de compra e usando médias para isso. Eu realmente gosto de negociação de pivô baseada nas ondas Elliot. Se você tiver algo a comentar e recomendar um sistema comercial que considere útil estudar, eu agradeceria.
 
Well, I have nothing to sell you.
Americans are bred to be curious and successful.
Parents wish that for their children.
But that doesn't mean selling everything.
For Americans, the journey to success is actually more important than the success itself.
In other words, you need to find your own way.
That is the Master plan to success.
It worked in America.
It can work for you too.
Good luck to All (GTLA)
 
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