In this video Vladimir Ribakov of Home Trader Club critiques the common practice of trading solely on simple MACD line crosses, explaining why that approach often leads to false signals, especially when it conflicts with the prevailing market trend. He outlines two robust ways to employ the MACD correctly: (1) combine MACD crosses with clear price‑action trend structures and the RSI (14) set with 50, 80, and 20 levels to confirm bullish or bearish momentum; (2) use a multi‑timeframe method where a higher‑timeframe MACD cross is validated on a lower‑timeframe by checking the MACD’s position relative to its zero line (negative/positive zones) and ensuring the cross aligns with the lower‑timeframe price structure. Throughout, he stresses the importance of never trading against the trend, using divergence/convergence cues, and placing trades with strong risk‑reward ratios (entry near recent swing lows/highs, target previous swing highs/lows). The video also includes promotional mentions of Home Trader Club and 8K Broker, but the core educational content focuses on practical, rule‑based MACD usage that integrates price action, RSI, and multi‑timeframe analysis.
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Hello traders, Vladimir here from Home Trader Club, and in this video, stop using the MACD in a wrong way. What is the wrong way and what are the right ways to use the MACD? Let's break it down. Before we continue, big thanks to 8K Broker for supporting our community and to enjoy all the amazing offers we have with 8K Broker, including the access to Home Trader Club up to 1 year, including the private mentoring sessions, live trading room, access to all the indicators in the marketplace, the trading systems Please refer to the link below this video in the description. MACD is one of the most popular indicators out there, and I admit I'm a fan myself. Okay, Moving Average Convergence Divergence indicator, or the MACD as we know, could be, you know, for me it's a legendary creation. And yet, with all the amazing opportunities this indicator brings if used properly. With all the verifications it gives for specific technical conditions, many traders simply misuse it. Why? Probably because it's easy and tempting to believe that if something just crosses up or down, it could necessarily mean it's a buy or a sell. So, uh, in this way, I want— in this video, I want to show why this assumption, belief, is wrong and misleading, and what are the correct ways to work with the MACD. But before I continue, I would like to ask your support. If you find value in what I'm showing here and all the teachings I'm making in my channel, And the trading opportunities I share with you during the week, please hit the like button. Feel free to share this video with anyone who you believe can benefit watching that. And if you are new to our channel, please consider to subscribe with the subscribe button below this video so you can get your access to more education, more trading ideas, weekly forecast, and way so much more. So thank you for supporting. Now let's continue. So one of the most common ways the MACD is used among traders is classical cross. There are so many bots that are trying to follow this logic, but this logic is not correct. And what I want to say here, and I hope you will remember, that indicators indicate why the price dictates. I admit, years ago, over a decade ago, I was sometimes following the indicators blindly. Like, indicators say, I do. You know, with the expertise, with everything you learn, with all the mistakes, with all the losses, you learn to understand that the best combination is price with indicators. Uh, so with all the respect to any indicator They could not be used solely. They cannot be used as, oh, the indicator says buy, I'm buying. Sell or sell. You have to be able to combine them. So one of the most popular ways that so many traders try to follow the MACD is simply crosses. If the moving averages cross down, they sell. If the moving average cross up, They buy. So there is that— the logic here is basic and, and could be powerful, but in the condition of trending markets, uh, this will lead you to wrong actions like sell against the trend when the market is trending here or here or here. All these crosses would lead to nothing. Even these cross which look tempting, right? Starts to move down and then just to make a new high. So to go with crosses against the trend is wrong. How do you identify a trend? By connecting highs and lows in a sequence. Once you start to see highs and lows going in one direction. You— the estimation here, the trend is there, and as long as there are no signs against, this is probably the best direction to follow. So one of the things I will be showing here is how this MACD with the RSI could be combined. Now, um, if you want to learn further everything about my trading techniques, including the MACD and the way I use it, First of all, let me invite you to our trading family, the Home Trader Club, where you will get your access to all of our trading courses, the media zone, the real-time trading education and opportunities, and so much more. So join us with the link below this video in the description. And I would like to recommend you, if you are after strategies, specific strategies with MACD and price action, Make sure you watch this video right now on the right top corner. It will be the best strategies to use in 2024. Of course, it's relevant for every year. It's just for the title. So you can see the MACD in action with the price in real time. So one of the best ways to combine the MACD in a trend. So look at it this way. We got here lower highs, lower lows. At some point it changes and the market starts to make higher highs, higher lows. The trend line is broken. Now we have higher highs and we flip the trend. And if that's the case and we start to combine the higher highs, higher lows, right, look to buy with the trend. How long the trend will continue, no one can predict. So you follow until the market proves it differently. One of the best ways to do that is if you take the RSI. So I use the RSI 14, okay? But if you go and you add— I use 80/20 for extremes. But if you add the level of 50, you will see the middle line. And any— the idea of RSI with 50 is above that we are in bullish momentum, below that in a downtrend, we are in a bearish momentum. So if we are In that case, like you can see, right, we are now in an uptrend making higher highs, higher lows, and MACD crosses to the upside with RSI being above the 50 in an uptrend gives you the green light to continue, right? Here we cross up, RSI above 50, green light to continue. Here we cross up, here also, well, it's attempt to cross up, right, with RSI above 50 and the market continues. Until when? Until it will be blocked by something like that with a bullish divergence— bearish divergence, sorry. Now, I don't want to go in these terms, what it is and everything. If you want to learn more about divergence, right now in the right top corner, watch the video talking about the divergences specifically. So this is one way, the correct way There are so many ways to use the MACD. I want to give you something simple and yet powerful, how to work with some cat's fur here. Sorry. How to use that with a combination of price structures in a given direction with indications, right? And that's the powerful combination you can do. But do not trade against the trend. As long as there are no given signs for that. So this is one very powerful way to use the MACD correctly in trending conditions. The other trading strategy or use of the MACD with price I want to give you comes from the, I would say, multi-timeframe directions. With a very specific combination. So I'll show you an example. Take a look what happens here on a daily chart. We are in a bearish trend and then at some point the market flips to the upside, right? The MACD attempts to cross upside here and successfully do it, right? So in that case, what I love to do is to drop to the 4-hour chart And I recommend it to watch the divergencing. But here is what you want to pay attention to on when you go to the lower time frame, right? When higher time frame made the cross, you go to the lower time frame. What you want to see is basically cross from negative zone. As you can see, MACD splits to two, right? Positive is above the zero, negative below the zero. Right? And again, if you want to learn much more about all the indicators, how to use them, join Home Trader Club and learn everything from the courses we have. Now here comes the cross, but here is the interesting part. Higher time frame, we saw the cross. Lower time frame also completes the cross. So what we want to see now is the flip from negative zone to positive zone, to negative zone again. Look at that— negative, positive, negative compared, and it's there, they are lined up with the indicator— negative, positive, negative, right? But the negative, the second negative, did not cross below the first negative or before the first low. Very powerful sign. And then with the cross upside, usually that's where the opportunities align. What sort of opportunities? Trading opportunities, of course, but with very, very, very significant risk-reward because higher time frame just made the cross, lower time frames flipped the structure, and look what starts to happen here. The market starts to make higher highs, higher lows as well. So when you see this situation and you get the cross, you go— this is your buy protection below the most recent low, and you aim at least to the previous important swing highs, right? And this is where you would be able to get great risk-rewards. And I say at least because I explained before, when in case you start to ride Keep riding until the market will change the structure. As long as the market is making— this is where the price comes in— as long as the market is making the higher highs, higher lows, this is an uptrend. Okay, so these are two— there are again so many uses of the MACD, and I myself love to use the MACD in terms of divergence and convergence. One of the most powerful strategies you will ever see. That's why I recommended you watching the video talking about the strategies, um, that I use in Home Trader Club. Below this video in the description, I'll put the recommend— recommended videos to watch. Make sure you do so. Okay, so these are the 2 uses of the MACD which from my point of view are the correct uses. It doesn't mean that other uses would not be good, but one thing is wrong, and that's rely only on the MACD without the price, without analyzing key levels, without checking higher time frames where we stand. Just cross up and down, up and down. That could work in, in trending conditions, but But later or sooner, every market will enter— let me show you— will enter some conditions like that where it will start moving back and forth, back and forth, back and forth. And then all the crosses would give you so many fake signals that you will find yourself in a position of a loss. So don't do that. It's wrong relying on that solely, doing only crosses. Especially when you are against the trend. When you are with the trend, combine that with the way I showed before, right? For example, once again, the second strategy I showed you, if you take a look on the crosses again, right? So here comes the cross right here to the downside on a daily chart. Then you go to the 4-hour chart and you see the negative, the positive, the negative. As long as this height holds, right? Positive, negative, positive, and then the MACD crosses. Okay, that gives great opportunities. Again, it's not a holy grail, it's just a common sense of the use of price with multi-timeframe analysis and price action reading. Because once that happens, usually Some recent trends here would be broken, trend lines, or you will start to see lower lows. All that will combine the indicators with the price. And when you go sell here and protect the recent high and aim at least to the previous low, that's where you get classical trading opportunities. So this, from my point of view, among the two of the powerful uses for the MACD. Let me know what do you think about this one and what is your favorite way to trade with the MACD indicator. Once again, thanks for your time. I hope you find value in this video. Please hit the like button if you didn't share it. A few words in the comment section will be fantastic help, of course. And I want once again to invite you to our trading family, the Home Trader Club, where you will enjoy all of our trading courses Real-time trading education and so much more. Join our family with the link below this video, and best to you and yours. Thanks for watching. I'll see you soon with more. Good trading. Bye for now.
