Mastering the MACD - How to use it in trading?The MACD, or Moving Average Convergence Divergence, is one of the most widely used technical indicators in trading. It was developed by Gerald Appel in the late 1970s and is designed to reveal changes in the strength, direction, momentum, and duration of a trend in a stock's price. At its core, the MACD is a momentum oscillator, though it is commonly plotted as a line chart rather than the traditional bounded oscillators like the RSI. Despite being unbounded, traders use the MACD primarily to identify potential buy and sell signals.
What will be discussed?
- How does the MACD work?
- How to use the MACD in trading?
- Divergences
- Conclusion
How does the MACD work?
The MACD is calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA. The result of this calculation is the MACD line. A nine-period EMA of the MACD line, known as the signal line, is then plotted on top of the MACD line. The third component is the MACD histogram, which represents the difference between the MACD line and the signal line. The histogram gives traders a visual cue about momentum: when the histogram bars are growing in height, momentum is increasing in the direction of the MACD line; when they shrink, momentum is slowing down.
How to use the MACD in trading?
Understanding how to use the MACD in trading requires some interpretation of the relationships between these components. One of the primary signals traders look for is a crossover between the MACD line and the signal line. When the MACD line crosses above the signal line, it is considered a bullish signal, suggesting that it might be a good time to buy. Conversely, when the MACD line crosses below the signal line, it indicates a bearish signal and potentially a good time to sell. These crossovers tend to be more significant when they occur below or above the zero line, which is where the MACD and signal line are equal. A crossover below the zero line followed by a move above it could signal the beginning of an uptrend, while a crossover above the zero line followed by a move below it might signal a downtrend.
Divergences
Another important application of the MACD is identifying divergence between the MACD and the price action of the asset. Divergence occurs when the price is moving in one direction and the MACD is moving in the opposite. For instance, if the price makes a new high but the MACD forms a lower high, it can be a warning sign that the upward momentum is weakening and that a reversal could be on the horizon. Similarly, if the price hits a new low but the MACD makes a higher low, it might suggest a potential bullish reversal.
Conclusion
In summary, the MACD is a versatile and powerful indicator that helps traders analyze the momentum and direction of a market trend. Its ability to provide both trend-following and momentum signals makes it a valuable tool in a trader’s toolkit. While it is not a standalone solution, when used properly and in conjunction with other strategies, the MACD can greatly enhance the accuracy and confidence of trading decisions.
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Chart Patterns
AUDJPY Will Go Up From Support! Long!
Please, check our technical outlook for AUDJPY.
Time Frame: 12h
Current Trend: Bullish
Sentiment: Oversold (based on 7-period RSI)
Forecast: Bullish
The market is approaching a key horizontal level 93.383.
Considering the today's price action, probabilities will be high to see a movement to 96.039.
P.S
We determine oversold/overbought condition with RSI indicator.
When it drops below 30 - the market is considered to be oversold.
When it bounces above 70 - the market is considered to be overbought.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
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AUDCHF Will Go Higher! Buy!
Here is our detailed technical review for AUDCHF.
Time Frame: 12h
Current Trend: Bullish
Sentiment: Oversold (based on 7-period RSI)
Forecast: Bullish
The market is approaching a significant support area 0.536.
The underlined horizontal cluster clearly indicates a highly probable bullish movement with target 0.548 level.
P.S
Overbought describes a period of time where there has been a significant and consistent upward move in price over a period of time without much pullback.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
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Hedera (HBAR): Seeing Good Momentum | Eyes on EMAsHedera has formed a nice small uptrend here where buyers recently broke the 200EMA mark on the daily timeframe. As we are seeing some sort of buying volume forming here, we are waiting for a proper bounce from here, which would mean that we would continue the growth in this small trend.
Setup is valid as long as we are above 200EMA
Swallow Academy
Stellar (XLM): Possible Buying Opportunity | Price Near SupportStellar coin has been forming some sort of bullish trend, where price has reached the lower side of that trend where buyers took over the area.
Now we are looking for that same momentum to continue and break the EMAs, which would then lead the price towards the upper side of the bullish trend.
Swallow Academy
GBPJPY The Target Is UP! BUY!
My dear followers,
I analysed this chart on GBPJPY and concluded the following:
The market is trading on 193.32 pivot level.
Bias - Bullish
Technical Indicators: Both Super Trend & Pivot HL indicate a highly probable Bullish continuation.
Target - 194.72
About Used Indicators:
A super-trend indicator is plotted on either above or below the closing price to signal a buy or sell. The indicator changes color, based on whether or not you should be buying. If the super-trend indicator moves below the closing price, the indicator turns green, and it signals an entry point or points to buy.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
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WISH YOU ALL LUCK
"Scalp Shorting GRASS at CMP Entry Plan Inside!"📉 Scalp Short Setup: #GRASS
⚙️ Leverage: 5x to 6x
🟢 Entry 1: CMP - 1.8650
🟢 Entry 2: 1.9000
🎯 Take Profits:
TP 1: 1.8464
TP 2: 1.8277
TP 3: 1.8091
TP 4: 1.7718
TP 5: 1.7345
TP 6: 1.6972
🔴 Stop Loss: 2hr Close Above 1.9330 (~2.7%)
📌 TP's & SL will be updated as price action develops.
🚨 Not financial advice. DYOR before entering any trade!
AUDUSD bullish sideways consolidation supported at 0.6355AUDUSD maintains a bullish bias, supported by the prevailing upward trend. Recent intraday movement indicates a corrective pullback toward a key consolidation zone, offering a potential setup for trend continuation.
Key Support Level: 0.6355 – previous consolidation range and pivotal support
Upside Targets:
0.6470 – initial resistance
0.6500 and 0.6550 – extended bullish targets on higher timeframes
A bullish breakout from 0.6355 would suggest continuation of the uptrend, confirming buying momentum.
However, a decisive reversal and daily close below 0.6355 would invalidate the bullish structure, opening the door for further retracement toward 0.6310, with additional support at 0.6235 and 0.6195.
Conclusion
AUDUSD remains bullish above 0.6355. A bounce from this level supports further gains. Traders should watch for confirmation signals before positioning for the next move.
This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.
Bullish potential detected for WPREntry conditions:
(i) higher share price for ASX:WPR along with swing up of indicators such as DMI/RSI.
Stop loss for the trade would be:
(i) a close below the 200 day moving average (currently $2.49), or
(ii) a close below the 50 day moving average (currently $2.42), or
(ii) below the support level from the open of 2nd January (i.e.: below $2.34), depending on risk tolerance.
MAJOR CRASH INCOMING ON the weekly time frame there are 5 waves up and a clear A and B corrective wave. unless wave B breaks the ATH the drop to 60kish range remains in play. Target is the length of wave A measured from the base of wave B with target fib 1-1.386 fib or whatever. Looks like the 1.236 fib lines up perfectly with the equilibrium that would need to be retested still since breaking out of it. This is a weekly analysis so remember it will take a while to get all the way down there. If it morphs into a 5 wave down then the bottom of the channel btc has respected since inception would be likely target. lets see what happens but until the ATH is broken wave C drop is what the highest probability of playing out. COINBASE:BTCUSD
ALTCOIN BOOM FOR CHAINLINK 2025-2026 PROPOSALWhy This Asset?
Core Info: Chainlink is the decentralized oracle network that bridges blockchains with real-world data (price feeds, weather, sports scores), enabling smart contracts to operate autonomously. It’s the critical infrastructure for DeFi, gaming, insurance, and beyond.
Recent News:
Cross-Chain Interoperability Protocol (CCIP) launched on Base (Coinbase’s L2) and other chains, streamlining cross-chain token transfers.
Partnership with DTCC (the $2 quadrillion securities settlement giant) to pilot real-world asset (RWA) tokenization.
Deep Dive:
Chainlink is capitalizing on two seismic shifts:
Institutional Adoption: DTCC’s collaboration signals TradFi’s growing reliance on blockchain infrastructure.
Multichain Dominance: CCIP’s expansion solves crypto’s fragmentation issue, making LINK indispensable for cross-chain interoperability.
Latest Tech/Utility Update
Update: CCIP mainnet launch + upgraded staking v0.2 (supports more node operators, boosts rewards).
Implications:
For Users: Cross-chain swaps become cheaper and faster, rivaling LayerZero and Wormhole.
For Investors: Only 8% of LINK is staked. If adoption accelerates, reduced supply + rising demand could trigger deflationary pressure.
Biggest Partner & Investment
Partner Spotlight: SWIFT, the global banking messaging network, tested CCIP with 10+ major banks for cross-border transactions.
Deal Size: Undisclosed, but SWIFT’s network spans 11,000+ banks. Integration could funnel trillions into blockchain.
Impact: SWIFT’s involvement isn’t just a partnership… it’s a gateway for TradFi liquidity. Chainlink is now the backbone for both DeFi and legacy finance.
Most Recent Added Partner
New Collab: Avalanche integrated Chainlink Data Streams for high-speed DeFi pricing.
Why It Matters: Avalanche’s institutional subnets (e.g., JPMorgan’s Onyx) now rely on Chainlink for hyper-accurate data. LINK solidifies its role as the oracle for performance-focused chains.
Tokenomics Update
Changes:
Staking v0.2 offers 5-8% APY but requires longer lockup periods.
Total supply remains fixed at 1B tokens (no inflation).
Analysis:
Staking upgrades reduce sell pressure, but 40% of tokens are still held by early investors. Gradual unlocks could cause short-term volatility, though institutional demand (e.g., SWIFT/DTCC) might absorb it long-term.
Overall Sentiment Analysis
Market Behavior: Accumulation phase. LINK surged 40% since June (13 or 13−15 range), with whale wallets growing steadily.
Driving Forces:
Bullish: CCIP adoption + SWIFT/DTCC hype.
Bearish: Rising competition (Pyth Network, API3) in the oracle space.
Insight: Sentiment is cautiously bullish. Chainlink’s first-mover advantage is strong, but it must keep innovating to fend off rivals.
Recent Popular Holders & Their Influence
Key Investors:
Wintermute (crypto’s top market maker) boosted LINK holdings by 12% this month.
Cobie, a crypto influencer, tweeted: “LINK is the oracle blue-chip.”
Why Follow Them: Wintermute’s moves often signal institutional positioning. Cobie’s endorsement fuels retail momentum.
Summary & Final Verdict
Recap: Chainlink is the glue connecting DeFi, TradFi, and multichain ecosystems. CCIP, SWIFT/DTCC deals, and staking upgrades create a perfect storm of utility and demand.
Verdict: LINK is a long-term hold with asymmetric upside. It’s not a meme coin, but its dominance in oracles (60%+ market share) makes it a cornerstone of crypto’s future. Risks include token unlocks and Pyth Network’s growth.
Final Thought: If you’re betting on blockchain infrastructure becoming mainstream, LINK is essential. If you want hype-driven pumps, look elsewhere.
German DAX – Bearish Alt-Bat Pattern in Play?FX:GER30
The German DAX remains technically trapped in a defined range, with resistance now under pressure at €23,960 and intraday support printed at €23,358 . Notably, the index continues to reject the idea of reclaiming the weekly fractal resistance from March, forged at €23,478 .
The index is forming a bearish at-bat pattern , with a PRZ projected at €24,075 , corresponding to the 113% Fibonacci extension of the prior XA leg. This extension presents a technically significant reversal point and warrants close observation for price exhaustion.
📉 Bearish Scenario:
We could see a corrective leg targeting the 38.2% Fibonacci retracement at €22,085, which also aligns with prior structural lows. The daily fractal support at €22,306 becomes a critical interim level to watch during this potential pullback.
🔍 Key Levels:
Resistance: €23,960 / €24,075 (alt-Bat PRZ)
Intraday Support: €23,358
Weekly Fractal Resistance (broken): €23,478
Daily Fractal Support: €22,306
Bearish Target (38.2% fib): €22,085
📌 Outlook:
Bias leans bearish while below €24,075. A reaction at the PRZ could provide tactical short opportunities, especially if confirmed by momentum divergence or candlestick rejection signals on lower timeframes. As always, manage risk accordingly.
Happy Trading,
André Cardoso
Gold - New ATH in the making?Overall Market Context
This daily timeframe chart of Gold (XAU/USD) reflects a textbook example of a bullish retracement within a broader upward trend. The price has recently pulled back after printing a significant swing high, which is currently the all-time high (ATH). This retracement brings Gold into a high-probability reversal zone, aligning several technical elements that point toward potential bullish continuation.
Retracement Into A Confluence Zone
Price has retraced into a key technical area defined by the Fibonacci golden pocket (0.618–0.65) and a Fair Value Gap (FVG). The golden pocket is widely regarded as one of the most reactive retracement levels in Fibonacci analysis, where institutional participants often enter or scale into positions. The addition of an FVG overlapping this zone strengthens its importance. An FVG is typically created by an aggressive move that leaves behind inefficient price action or unmitigated imbalances, and in this case, it represents an area where demand previously overwhelmed supply.
The combination of the golden pocket and FVG creates a strong demand zone, from which a bullish reaction is expected if the overall macro sentiment remains supportive.
Bullish Reaction And Confirmation
Price wicked slightly below the FVG, likely triggering liquidity stops resting beneath prior swing lows before showing signs of a strong bounce. This type of price action—known as a liquidity grab or "spring"—is often a precursor to significant reversals when it aligns with higher timeframe bullish order flow.
The current bounce from this zone suggests that smart money may have accumulated long positions here. If price continues to hold above this zone, it confirms a successful defense of this key area and increases the probability of bullish continuation. The market is showing signs of shifting from a retracement phase back into an impulsive phase.
Break Of Structure And Targeting Buy-Side Liquidity
The next key area of interest is the buy-side liquidity resting above the most recent swing high, labeled as the "BSL" (Buy-Side Liquidity). If price breaches this level, it will confirm a break of market structure to the upside and signal a continuation of the overall bullish trend.
Such a break would invalidate the idea of deeper retracement and instead align with an impulsive leg that could target the previous ATH—and potentially exceed it. This makes the current zone a critical pivot point in determining whether gold resumes its long-term bullish trajectory.
New All-Time High Scenario
Should the BSL be breached and momentum maintained, price is likely to head toward printing a new all-time high. From a psychological and technical standpoint, the break of an ATH often leads to price discovery, where resistance is minimal, and price action becomes more volatile and parabolic.
Traders and institutions monitoring historical highs often front-run such moves or aggressively participate once confirmed, driving increased volume and volatility. This behavior can lead to rapid upside extension, especially when supported by macroeconomic narratives such as inflation hedging, geopolitical tensions, or declining real yields—all traditionally bullish catalysts for gold.
PRIME TIMEIt’s prime time for PRIME. Very low entry cost good risk to reward ratio, I believe with Bitcoin if it holds we could see PRIME do a very strong and fast push upwards. Not financial advice it’s just what I see. I was told I can’t post links in my ideas,
Long scalp if BTC breaks it’s downtrend, otherwise retrace downward until we get support as we are overbought on the daily but if this peaks we will see some price movement. If you follow me you have gained some scalp trades over 15-25% these past days on PRIME.
Good luck and have fun with it.
NC HAMMER CRYPTO will be my new name.
Bullish potential detected for WOWEntry conditions:
(i) higher share price for ASX:WOW along with swing up of indicators such as DMI/RSI, and
(ii) observation of market reaction at the resistance level / volume profile area at $32.32 after closing above 200 day MA.
Stop loss for the trade would be, dependent on risk tolerance:
(i) a close below the 200 day moving average (currently $31.63), or
(ii) a close below the 50 day moving average (currently $30.17).
EMIRATES REIT (CEIC) primed to launch Wave 3“REIT just reclaimed the fair value zone after a deep correction. Wave 2’s in the rearview — now we’re primed to launch Wave 3. Smart money’s stacked at 0.44. 0.66 is the golden magnet if bulls keep structure intact.”
🧠 Elliott Wave Breakdown
✅ Completed bullish impulse (1 → 5), topping out near 0.59
🔻 Deep corrective decline (sharp ABC or Zigzag) down into demand zone 0.4
🟢 New impulse wave :
Current count suggests we're in Wave (3) of the new cycle
Waves (1) and (2) are done — price bouncing from demand and fair value gap (FVG)
Fair Value Gap (FVG) near 0.50: Price filling imbalance and consolidating above average price
Resistance flip likely above 0.511 → breakout confirmation
📐 Fibonacci / Channel Projection
Price staying inside bullish channel
Target projected for Wave (5) = 0.66
🎯 Trade Setup
Entry 0.485 (current) or pullback to 0.470
Stop Loss Below 0.440 (demand zone)
Take Profit 0.661 (Wave (5) projection)
Risk/Reward ~1:3.5
“Amateurs go where the price is. Pros go where the imbalance is.”
⚠️ Disclaimer
Chart is for educational use only. Not financial advice. Always use a stop loss and follow your trading plan.
XAU/USD.2H CHART Pattern.. Gold (XAU/USD) trade setup:
🔽 Sell Trade Setup – Gold (XAU/USD)
Entry: 3208
Target: 3120
Stop Loss: ❓ (still needed)
Next Step:
To complete this trade idea, you'll need to define a stop loss — it's crucial for managing risk.
Would you like help:
Suggesting a reasonable stop loss level based on current price structure?
Calculating the risk-reward ratio?
Formatting this as a formal trade signal?
Let me know!