Vladimir Ribakov shows how to combine MACD and RSI to trade the AUD/NZD pair. He spots a bullish divergence on the 4-hour chart where price bounces off support, then confirms the setup on the 1-hour chart with higher highs and lows across both indicators.
Hey, how are you? Vladimir here from Traders Academy Club, and this video is a strategy combined of 2 great indicators which I personally love: the MACD and the RSI. So let's begin, but before we dig deeper into the details If you are new to this channel, so first of all, welcome to our fantastic community. I 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 know when a new content is available for you. And also, I would like to invite you to join our trading club, Traders Academy Club. You can also follow us in the free Telegram channel for the community where we publish some trading ideas and analysis and some other content. Both links could be found inside the description below this video or in the pinned comment in the comment section. So what do we have, uh, is the Aussie Kiwi as example for this wonderful combination of 2 very powerful indicators. The MACD and the RSI. To present the strategy in action, I want to take an example from our club, from Traders Academy Club, and I want to show you how we find our opportunities and then how you can apply this strategy and trade it. So this is an example of a trading report that we publish for our members of Traders Academy Club on daily basis. This is our watch list, and to present this strategy, I want to take this pair as an example. This is the Aussie Kiwi. So our analysis was based on the 4-hour chart. I'll also show you what was standing there behind the daily. What I saw here was 3 descending waves, pushes to the downside, which ended up with a bullish divergence that could be clearly seen on the moving averages of the MACD, but also on the histogram and on the RSI. Already an indication, because that's what indicators do, right? They indicate to us Uh, that the bull— sorry, the bears are running out of steam and the buyers might take the control. Now pay attention to what happens here. At that moment, this becomes a strong supportive area, right? As the price goes, the first visit on this area, we got a fake attempt to break out, another fake attempt to break out, and another fake attempt break down, break out to the downside. While the bullish divergence is building up, starting from this moment, the MACD moving average also crossed upside. Yes, it was crossing several times before, but it missed the next step, which I'm going to show you of the analysis and then the strategy. So at the moment, we got the cross. Now look what happens with the RSI. Breaking above its own resistance, you see, stabilizing its levels above this resistance. So the RSI resistance became an RSI supportive area, and mainly while the price is making the lower highs, lower lows, the RSI starts to do— and you are right. Higher highs, higher lows, as you can see. So while we spot such thing, we already understand that okay, the bears are losing control. How can we find buyers in the game and to enjoy from the strategy? But before I go deeper, I would like to take the twenty seconds and ask your help. If you find this video interesting, educational, helpful, please show your support back. Hit the like button below this video. That's how YouTube algorithm works, and your support, your help is very much appreciated and of course helps to the channel and helps me to keep doing this sort of videos for you and your benefits. So the next step is basically go and find the opportunity. One of the principles I love to follow is bullish and bearish, um, control. And the way we have them on this chart, as the pure definition, buyers create higher highs and higher lows, right? And inside what's supposed to be a bullish turnaround on the 4-hour chart, We can see that the one hour creates the higher highs, higher lows, and this is why for me I expect to see the rallies from here. When we observe the four hour chart MACD with the RSI, we got a great read together of the buyers. Now look what happens on the one hour. Same story exactly: higher highs, higher lows, and MACD does the same exactly. Higher highs, higher lows while the price was suffering. So the indicator indicates that something is building up and there is a great chance that buyers will take the control from here. We don't know for sure if they will, but we do know they have all the reasons to based on the technical analysis. And if they do, normally that's where your risk And reward would become as a great opportunity in your favor. So at this moment, we can see that on the one-hour chart, as the higher highs, higher lows develop, the view becomes bullish. We gain the momentum. Higher highs, higher lows on the MACD. Higher highs, higher lows. On the RSI, and this is the place where you want the multi-timeframe read in the same direction. It starts from the four-hour with the turnaround. It fits into the turnaround. The one-hour chart gives you the official signs where the price now falls into. The same direction that the indicators hint, and you get yourself a fantastic opportunity to enjoy from the buys. And up to where are you going to ride it? As long as the both time frames on the 4-hour and the 1-hour would stay riding bullish, gaining the momentum, you are good To ride, as the suggestion is always to pay attention to key levels on the go. And since we were starting from the four-hour chart, the next key levels for these pairs are here: the combination of these rejections levels, this area, and then we have it slightly higher. Can we predict in advance? where the market will manage to stop? The answer is no. It doesn't matter how much you try, you don't know if the levels you marked would reject or not. But you do know to— if they go through the levels, you are good to continue further. If they are not, you are good to enjoy your profits. And when you able to spot these turnarounds on the 2 time frames combination with the 2 indicators, you get yourself a fantastic risk-reward opportunity that can work in your favor with high probability to end up as a winner. So I invite you to join our club, the Traders Academy Club. Learn all the techniques we use. How do we combine the divergences and the waves into our analysis and to find our setups. And then with the combination of indicators, or even without, you can find your fantastic opportunities that can work in your favor with high probability. That's all for this video. I hope you find it useful, helpful, and educational and Feel free to share this video with anyone you wish because this video is free for the community and the idea here is to open the eyes of the traders how a combination of simple things, when you put it together, they give you great probability. They will not guarantee you a winner, but they will guarantee that you have a great starting point and great opportunity with high probability. In the business of trading, where it's all about the numbers and probabilities and statistics, that's exactly what you need. So follow us in Traders Academy Club, learn all our techniques, and follow us how we do the live market every single day, how we work with the live market prices every single day, finding the best of the opportunities following the very same principles of trading. Thanks for your time. I wish you all the best. Stay safe, and I'll see you around.
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