3 Steps MACD Trading Strategy For Forex Traders

Hello traders, how are you? Vladimir here from Traders Academy Club, and in this video I would like to present you a very powerful trading method based on the MACD analysis, or the MACD indicator, uh, and what could turn to be one of your trading strategies. So to do so, I refer to the trading report. This is— this trading report is directly from Traders Academy Club. That's what Traders Academy Club members get on daily basis, and this is from our live meeting. So to refer to that, I want to scroll down. You can see this is from 2nd November 2020. And I want to discuss about the this pair pound Aussie. So long story short, this was our analysis. Okay, and after analyzing the market, we expected to see the second corrective leg down. I'm not going to explain why this is as per the analysis. Of course, you can learn all my techniques inside of the Academy Club. It's not the subject of this video. I want to show you how after analyzing the market, how a trading strategy could be chosen, how to work with the direction you analyze to trade. So the plan was very straightforward: corrections, and we expect continuation with clear invalidation plan for the whole idea. Okay, so again, this is our analysis from Traders Academy Club, and I want to present you A very powerful method based on the MACD. How to work and find your opportunities to trade the trades, okay, once you have your preparation and you know based on your analysis what are you looking to do. But before I dig deeper and explain step by step the method, if you are new to this channel, I would like to welcome you first of all to our great community. I would also would like to invite you to subscribe to the channel. Just follow the subscribe button below this video and please remember to enable the notifications so you are notified when I upload a new content for you. Uh, as well, I would like to invite you to join our trading club, the Traders Academy Club. You can also follow us in a free Telegram channel that is available for the community. Both links could be found below this video. In the description or inside the pinned comment on the inside the comment section. So let's go back to the pound Aussie and as I always work, I first of all pre-analyze. Okay, I do general analysis. Why do I do that? To find my opportunities. My trading method is based on multi-timeframe synchronization. When I have a money flow that gives me in different time frames and different time scales showing me to the— that the flow of the money goes to the same direction, that's where I know my chances are bigger. There will be no guarantee to find winner trades, but there will be bigger chances for that. So what do we have on the pound Aussie? And again, let's take it Easy, step by step, without overcomplicating nothing. It was going up, and since then it's going down. I don't need to tell you that. Your eyes catch that. That's the very first thing we see with our eyes. Okay, can you say you have a clear picture on the last one year? The answer is not really. It was going up, then it's going down. But the bottom line is, since the— well, almost the beginning of this year, the price is going down and pretty significantly. So this is the very first thing. The next step is, okay, what are the key levels we have? We definitely see the key level right here. It was even before the price reached to test it, but now as it tested, We see it's strong. It was this area, you see that? It was a great resistance, became support, great level of rejection, and it was holding since here, here. On this visit we got a fight here again, okay? Many, many times strong area. That dynamic resistance of the 200 moving average, the red line you can see here, is also bearish slope. So the pressure is bearish. Okay. And after I made my analysis, general analysis, just to understand where the, you know, where the wind blows, where the momentum is in the bigger picture. Now it's time to break it down. And here is what I am looking for on the MACD, where the same wind blows in a multi-timeframe. What do we have here? The price is trying to climb up. But the MACD doesn't follow the same. What does that mean? The market managed to create on this little rally since beginning of September, middle of September, um, the market managed to make higher highs, higher lows, but the MACD made lower highs, meaning that it's not synchronized. The momentum is not really there. Besides that, right here we already experience an attempt to cross, right, on the cross, the negative cross from the positive area to the negative area on the moving average of the MACD. Okay, so we know that something is going on there. Then we drop to the lower time frame. On the lower time frame, what do we have? We have a very significant As you can see, cross down starting from this area. Okay, cross down and on the MACD, and it enters the negative zone. Moreover, for the first time after this rally where we clearly had higher highs, higher lows, for the first time we got lower highs. We still did not Well, now we see we do, but yesterday we did not have any lower lows. So this is still early to know, will that be created? But the bottom line, lower highs for the first time after this massive rally. Add to that the daily analysis and what do you get? Some bearish pressure. Is that still enough for a trade? We don't know, but we do know that a bullish existence is not really here at the moment. The buyers are not really here, right? So the bearish momentum plus the general analysis in the bearish direction, that starts to look like an opportunity. And that's where I like to go to the 3rd lower time frame, in that case the 1-hour chart. And by This one was creating lower highs, lower lows here, and mainly the momentum is synchronized. You see that we do we do have the MACD pushing down and making lower lows together with the chart. Right from this area, I know that retraces is exactly what I will be looking for to go and make my sell. As I presented you here in the analysis, we had. This is exactly the plan. So I do expect to see retraces and then look to sell them. From this moment, basically what you want to look is your— the opportunity to enter a sell. One of the techniques could be applied with a hidden divergence. Okay, right now on the top right corner of this video, you can See a referral to a hidden divergence video as well. And the idea here is after you made your analysis, after you synchronized your time frames, you can find the strategy you want to enter. I'll show you one of my favorite strategies. And again, if you purely work with the MACD, this is where you got the bearish hidden divergence hinting for a trend continuation. If you have no clue what hidden divergence is, as I said, on the right top corner you can find, uh, the direct link to watch this video, or below you can find that link to download my hidden divergence ebook, free ebook. So that's one technique. Another technique is what I like to do at that moment Once I do have my MACD in play, I love to go and verify waves. And what I love to see is the waves pushing in the bearish direction. We got the corrective move. So look what happens. We have series of lower highs, lower lows. We have a pullback, a key zone of rejection here, as you can see. It resisted, right? Look what happens with the dynamic moving average of the 200. It's very bearish, right? So what do you understand from this situation? Is there anything bullish here? The answer is no. From this moment, you can mark the ABCD line. You can work with the pure rejection zone that you have. Okay, and mainly you want to make sure that you protect yourself. So upon the 1-hour chart, as I showed before, I had invalidation as this scenario. Okay, and of course if you trade lower time frame, you can use the previous invalidation level, rejection levels from the lower time frame, and use that as the protection. And as the target, you will want to use significant levels like swing low, for example, or the next key supportive area. That's where you will want to find your possible targets when you work with them, with such trades. So to summarize up, what is this MACD method and what it's based on? First of all, Pre-analysis, general analysis, just general, what your eyes catch. Do you have key levels? If you have them, they should be obvious. You should catch them without going into details. You should catch them, be able to catch them, the basic ones: trendline support, resistances, round numbers, etc. Okay, then you are checking into the lower time frames, and then you start to apply your MACD. You want the MACD to point to the downside. That could be with the momentum, that could be with crossing the moving averages like we just saw. And then the divergences could come in like the hidden divergence example that I show, or my favorite style is the combination of divergences with the waves. 3 waves to the downside, 2 waves in the correction, This is the place where I know I want to be involved. So that's my suggestion when you work with the MACD. Don't purely rely on the indicator saying it will be fine. Make sure that the price behavior supports your assumption, your analysis. As much as I love indicators by myself, especially the MACD, it is important to remember the job of the indicators is to indicate, not to make your own decisions. Remember that the next time you consider your trade. I would also like to take 20 seconds and ask your help by quickly hitting the like button of this video if you find it useful. And helpful, and your support and my work is very much appreciated. YouTube requires this little feedback, so if you can hit the like button if you enjoyed this video, please do so, and thank you very much in advance. And to learn all the techniques I use on real time, on daily basis, when we do our live market analysis and we back it up with the detailed, as you saw, trading reports, I invite you to join us in Traders Academy Club. The link could be found below this video, uh, and I hope to see you with us. Thank you very much for your time watching this video. I hope you find it helpful and educational. I wish you all the best. Stay safe, be well, and good trading.