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May 24th news, US President Trump said on May 23rd local time that if the mobile phones sold by Apple in the United States are made in foreign countries, they should face at least 25% tariffs. In an interview on the same day, US Treasury Secretary Bessant said that President Trumps original intention was to bring precision manufacturing back to the United States with the help of Apples relocation of the industrial chain. In this regard, some American experts said that moving Apple mobile phones back to the United States for production is "unrealistic like a fairy tale", and Apple will pay a high cost, and the price of its products will also rise. Apple phones produced in the United States will be sold for US$3,500, or about RMB 25,100. Compared with spending huge sums of money to move production lines back to the United States, Apple hopes to increase its investment in the field of artificial intelligence.Bank of Canada Governor Macklem: The transmission effect of tariffs in price data has not yet been observed.Bank of Canada Governor Macklem: The top priority is to reach a trade agreement with the United States.On May 24, Russian Ambassador to the UK Andrei Kelin said in an interview with the Russian Satellite News Agency that British society is increasingly tired of the Ukrainian conflict and British citizens do not want their country to accept Ukrainian refugees. In response to the question of whether British society is tired of the Ukrainian issue, Kelin said: "British society is tired of the Ukrainian issue, although it is not in the majority. If a year ago we were still talking about 80% of British people supporting their governments actions in Ukraine, now this proportion is seriously declining. I dont want to reveal specific numbers because they fluctuate frequently, but the trend is obvious. This is a decline in public support. More and more people are talking about the British people being tired of Ukrainian refugees and not wanting to take them in anymore."Russian Ministry of Defense: Russian troops occupied Stopchi and Otradny in eastern Ukraine.

How to Use a MACD Crossover to Enter Trades

Larissa Barlow

Mar 24, 2022 17:54

While many traders seek chances to trade amid tumultuous market situations, the significance of timing cannot be overstated.

 

The purpose of this article is to educate traders about the MACD crossover and to explain how it can be utilized effectively in Forex trading.

What Is The Macd Crossover

The Moving Average Convergence Divergence (MACD) indicator is a technical indicator that measures the market's momentum and direction by comparing the difference between two exponential moving averages. When the MACD line and the signal line intersect, the MACD crossover occurs, frequently signalling a change in the market's momentum/trend. The MACD is regarded as a very accurate indicator, particularly in trending markets.


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The MACD is composed of the following components:

 

The MACD line (blue line) is the difference between two exponential moving averages (often 12 and 26 days or weeks) and is frequently referred to as the quicker line.

 

The signal line is often a nine-period exponentially smoothed average of the MACD line; it is sometimes referred to as the slower line.

 

MACD lines swing above and below a zero line, lending the MACD oscillator characteristics.

 

The histogram is made up of vertical lines indicating the spread between the two MACD lines.

Forex Trading With The Macd Crossover

Three advantageous strategies to employ the MACD crossover in a forex trade:

  • MACD crossing as a cue for entry

  • Divergence is used to calculate momentum, with crossing serving as confirmation.

  • MACD crossover for signal filtering

1. MACD crossing as a cue for entry

By validating the direction of the trend prior to making a trade, a good entry strategy can boost the likelihood of success.

 

When the MACD line crosses over the signal line in the direction of the trend, this is the most often utilized entry signal.

 

When the MACD line crosses ABOVE the signal line and is below the zero line, a bullish signal is present. When the crossover occurs, traders may confirm the start of an upward trend by waiting for the MACD line to pass above the zero line before initiating a long position.

 

Similarly, when the MACD line crosses BELOW the signal line and is above the zero line, a bearish signal is present. Confirmation, once again, occurs when the MACD line passes below the zero line.

2. Using divergence to establish a trend with confirmation by crossing

Divergence may be highly beneficial for analyzing the trend's momentum during periods of high volatility or strong moving markets.

 

Divergence may be described as a break in the relationship between price movement and an indicator. Divergence can be observed on the GBP/NZD 2 hour chart below, as the market is making new highs while the MACD indicator is making lower highs. Divergence is frequently a sign of reversal, indicating that the trend is losing momentum.

 

When this occurs, traders may utilize the subsequent crossing to validate the onset of a market correction/reversal before initiating an opposite-direction position.

 

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3. Using the MACD crossover to select signals based on their trend direction

Traders who think that 'the trend is your friend' may find the MACD crossover to be an advantageous tool for filtering signals in the trend direction.

 

A trader can spot an upward trend by looking for crossovers that occur when the price chart shows higher highs and lower lows. Another indicator of an upward trend is the MACD line's (blue line) distance from the zero line. When the MACD line is higher than the zero line, the trend is upward. Traders that follow the trend will seek for buying opportunities only when the trend is upward. The inverse conditions would apply to traders seeking to sell.

MACD Frequently Asked Questions

Can you see a MACD crossing occurring?

Anticipating a MACD crossing (or any other movement, for that matter) is not encouraged. The MACD is a lagging indicator, which means that it is based on historical data on price activity. While the MACD crossing is an excellent indicator to employ in trending markets, trading with the anticipation of a crossover is dangerous due to the fact that trending markets are prone to times of high volatility.

Which time window is the most appropriate for the MACD crossover?

The MACD crossover may be employed on any time frame, however the time frame used is frequently determined by the type of trader. Multiple time frames are frequently advantageous since they provide a more comprehensive perspective of the market. A longer time period may be utilized to examine the general trend, but a shorter time period frequently accelerates the frequency of signals.