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On April 26, according to the Wall Street Journal, in order to simplify the negotiations on reciprocal tariffs, US negotiating officials plan to use a new framework developed by the Office of the United States Trade Representative (USTR), which lists major categories of negotiations, such as tariffs and quotas, non-tariff trade barriers, digital trade, product origin principles, economic security and other commercial issues. In these categories, US officials will put forward specific requirements for individual countries, but people familiar with the matter emphasized that this document may also be adjusted at any time. People familiar with the matter said that the United States initial plan is to negotiate with 18 major trading partners in turn over the next two months. The initial plan is to alternately participate in the talks with six countries per week for three weeks (six countries in the first week, another six countries in the second week, and another six countries in the third week) until the deadline of July 8. If US President Trump does not extend the 90-day suspension period he set by then, those countries that cannot reach an agreement will begin to face reciprocal tariffs.On April 26, after the United States announced additional tariffs on goods from many countries, Peruvian business people expressed concerns that the US governments extreme measures would disrupt the global trade order and may even trigger a global economic recession. Alvaro Barrenechea Chavez, vice president of the Peruvian-Chinese Chamber of Commerce, said that the negative impact of the US tariff policy has begun to emerge and hoped that the US government would rethink. Recognizing the importance of countries working together to promote development, I think this is the best way to become a true "world citizen."Market news: Musks xAI company plans to raise about US$20 billion in a financing round.Conflict situation: 1. Ukrainian top commander: Russia tried to use air strikes as a cover to increase ground attacks, but was repelled by Ukraine. 2. Ukrainian Air Force: Russia launched more than 103 drones in the night attack on Ukraine. 3. Local officials said Ukraine launched an attack in the Belgorod region of Russia, killing two people. 4. The local governor said that Russia launched an attack on the Dnipropetrovsk region of Ukraine, killing one person and injuring eight people. Peace talks: 1. Trump: ① The situation between Russia and Ukraine is gradually becoming clear, and they are "very close" to reaching an agreement. ② Ukraine is unlikely to join NATO. ③ Ukraine has not yet signed the rare earth agreement and hopes that the agreement can be signed immediately. ④ It is foreseeable that the United States will conduct commercial cooperation with Ukraine and Russia after reaching an agreement. 2. Russian Foreign Minister: Russia is "ready to reach an agreement on Ukraine." 3. Russian Presidential Assistant Ushakov: Russia and the United States will continue to maintain active dialogue. 4. Russian Presidential Assistant: Putin discussed the possibility of resuming direct negotiations between Russia and Ukraine with the US envoy. 5. The differences between the United States, Europe and Ukraine are clear. The documents show that European countries and Ukraine have raised objections to some of the US proposals to end the Russia-Ukraine conflict. 6. Market news: As part of the peace agreement, the United States asked Russian President Putin to abandon the demilitarization requirement. Other situations: 1. President of Hungarys OTP Bank: We hope to return to all business areas in Russia after the (Russia-Ukraine) conflict ends. 2. Ukrainian President Zelensky: US ground forces are not necessary for Ukraine. 3. Trump said Crimea will remain in Russia, Zelensky: Never recognize it. Agreeing with Trumps view, Crimea cannot be recovered by force. 4. NATO Secretary-General Rutte met with Trump and senior US officials to discuss defense spending, NATO summit, and the Ukrainian conflict.Rising global trade risks, overall policy uncertainty and the sustainability of U.S. debt top the list of potential risks to the U.S. financial system, according to the Federal Reserves latest financial stability report released on Friday. This is the first time the Fed has conducted a semi-annual survey on financial risks since Trump returned to the White House. 73% of respondents said that global trade risks are their biggest concern, more than double the proportion reported in November. Half of the respondents believe that overall policy uncertainty is the most worrying issue, an increase from the same period last year. The survey also found that issues related to recent market turmoil have received more attention, with 27% of respondents worried about the functioning of the U.S. Treasury market, up from 17% last fall. Foreign withdrawals from U.S. assets and the value of the dollar have also risen on the list of concerns.

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.