in the first part i told you ,how to use MA for easy swing trading (simplified version i probably make a part 3 to explain my real method) now we do the same but with : MACD so : -when blue ligne crosse up red line >> buy -when blue line crosse down red line >> sell and ? that's all , easy peasy lemon squeezy :)
again it's a simplified version , personally i use the 4h graph . for the same periode, if you use 4 h ,the gain are double but you have to make 5 times more trade . just under an exemple with 1000 dollars :
Wallet : 1000 dollars Buy : 8000 > <sell 17000 > gain : 112 % > 1120 dollar W: 1000 + 1120 > 2120 B : 16400 > S 16400 > gain : 0 % > 0 dollar W : 2120 + 0 > 2120 dollars B : 8000 > S : 10000 > gain : 25 % > 530 dollars W : 2120 + 530 > 2650 dollars B: 6900 > S : 9300 > gain : 34 % > 501 W : 2650 +901 > 3551 dollars start : 1000 dollars end : 3551 dollars gain: 255 % >> 2551 dollars
just under an exemple on a short period with 4 h graph (try to share you the graph in comment)
wallet : W buy : B sell : S gain : G dollar : d
W : 1000 dollars B : 9500 > S : 11000 > G : 15% >150 d W: 1000 + 150 > 1150 B : 9000 > S : 9200 > G : 2% > 23 d W : 1150 + 23 > 1173 d B : 8000 > S : 8000 > G : 0% > 0 d W : 1173 + 0 > 1173 d B : 7400 > S : 8900 < G : 20 % > 234 d W : 1173 + 234 > 1407 d B : 7000 > S : 7000 > G : 0% > 0 d W : 1407 + 0 > 1407 d B : 6700 > S : 6900 > G : 3 % > 42 d W : 1407 + 42 > 1449 d B : 6800 > S : 8000 > G : 17.5 % > 253 d W : 1449 + 253 > 1702 d B : 8000 > S : 8800 > G : 10 % > 170 d W : 1702 + 170 > 1872 d B : 8900 > S : 9300 > G : 4% > 74 d W : 1872 + 74 > 1946 d B : 9200 > S : 9200 > G : 0% > 0d W : 1946 + 0 > 1946 d B : 9000 > S : 9700 > G : 7% > 136 W : 1946 + 136 >>>>> 2082 d
Wallet : 1000 >>>2082 gain : 100 % >>1082 dollars
so as you can see lot of trade but better gain (in the same period with 1d chart only 2 trade and 600 dollars gain)
ps :as you can see now we are in a sell periode (same for 1d and 4 h ) and it 's not time to buy yet...
ps : if you want the third part with my own MA version (not simple one) and how use it with MACD , like and share please beacause if the two first part dont cumulate 50 like i will not do the part 3 because it take lot of time..
like if you aprecciate (and for the part 3) , thanks :)=
This guide is very misleading. In a bullish or bearish market condition, like BTC before the crash on 12/16, this MACD buy/sell signal could work well given that the supertrend does not reverse often. However, when the price moves in sideways you won't be able to catch buy/sell signal at the right time because MACD lags the price action by a lot. This is going to result in loss.
For example, if you bought on 1/5 and sold on 1/8 it should have been a loss. Why do you not have that in your calculation? Also, why did you not buy and sell on (1/28, 1/29) and (3/22, 3/26)? You preferentially picked points in your favor. Man, if trading was this easy everybody would have made money. It can never happen because this is a zero-sum game.
Acel
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@teenhcl, you are right, its very missleading because of 3 main reasons:
1) MACD lags, like a lot.
2) He asumes that you use the stop loss at break even - so no loss, only wins.
3) He points the thumbs up sell signal at the "top" while MACD gives it way later
awemazeinc
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So based on this 4hr chart of ETH with MACD and MA it's definitely time to buy?
Krypto-Talak
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@awemazeinc, in theory yes , but like i said before for 4h chart better to use with MA and maybe stochastic , thats why if you only use MACD you buy now at 9300 , i bought around 9000 ...
GKT
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Thank you for taking the time to do this, it is appreciated. I hope to see part 3.
I am going to study on your method and try it on the 4 hour.
newtrader_201
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you think MACD alone can show the way price will go ? MACD is turning bullish in H4.actually i think MACD is a useless indicator. it has a lot of delay.thats right MACD in daily time frame is showing bearish signs but it can change with one daily candle.furthermore , MACD is turning bullish in weekly timeframe.
Krypto-Talak
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@newtrader_201, like i said h4 is more difficult to use alone ...but if you use 1 D chart no problem :) i personnaly use h4 with MA for swing trading , for day trading it don't work 100 % that why i use MACD + stochastic rsi +rsi + MA +resitances and support + fibo :)
Krypto-Talak
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@talak, but you can use h4 just sometime you will have trade with 0 gain and maybe sometime loser trade but in long term if you use just macd h4 you win :) but if you use MACD + MA you win more :)
hope you understand what i said because my english is not good :)
newtrader_201
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@talak, i agree.i use MACD beside other indicators too.so you say that MACD is a good indicator in longer time frames but its not reliable in shorter time periods like H4 ?
Krypto-Talak
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@newtrader_201, no h4 is good because i use h4 no 1d because like i said if you take the same periode like 3 month you will work more with 4h (5 times more trade) but more gain (2times more gains) so it depend if you have time to trade or not..
for more efficiency i use MA with MACD (easy swing trading part 1)
under 4h (1h,30min'15min) this strategy don't work because of volatility.. so for day trading you have to use more indicator , like rsi..and resistances support , fibo , pattern...
For example, if you bought on 1/5 and sold on 1/8 it should have been a loss. Why do you not have that in your calculation? Also, why did you not buy and sell on (1/28, 1/29) and (3/22, 3/26)? You preferentially picked points in your favor. Man, if trading was this easy everybody would have made money. It can never happen because this is a zero-sum game.