Insane MACD TRADING STRATEGY 99% // You've Been Using ALL WRONG TRADING TECHNIQUES! This is the WAY! - YouTube

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today you will learn how to trade with
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insane magnet trading strategy i love
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using momentum based techniques this
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best macd trading technique is actually
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quite easy to use wiggle couch what is
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macd structure of the indicator
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advantages and disadvantages time frames
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trading setup with indicators and
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finally the great magnet trading
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strategy with examples
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hello friends hope you're doing great
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let's learn a special way of trading
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with macd indicator so many people make
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mistakes by using the macd as a buy or
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sell indicator actually macd is a
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momentum and red indicator rather than
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buy or sell indicators so you have to
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combine couple of things before trading
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with the macd indicator
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we will go over everything step by step
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again if you're ready let's start
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okay let's start with what macd is like
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rsi macd is one of the most popular
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indicators in the trading world in my
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eyes mcd is only for understanding the
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momentum
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some people use it as a buy sell
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indicator however i'm strongly against
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it most people use the macd the wrong
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way but i will teach you the right way
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in this video
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actually mcd is a 40 years old indicator
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and survived this long it's basically a
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different representation of exponential
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moving averages with smoothed signals
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and histogram
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it's a lagging indicator and a really
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slow one this is why it is not a great
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choice for buy cell indications
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now let's understand the structure of
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the macd there are three main parts of
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macd the macd line
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the signal line and make the histogram
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what i only use is make the histogram
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which i will teach you in the trading
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chapter i will not get into the formula
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of macd you can find it on almost every
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trading website i'll be talking about
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the most important and useful parts this
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blue line is called macd line this
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orange line is called the signal line
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so the purpose of the signal line is to
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smooth the macd line
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it's also called the moving average of
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the macd line
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confused enough yet don't worry i'll
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show you what you really need very soon
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and there is the histogram the only
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thing that i enjoy about macd
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it plots the difference between the macd
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line and the signal line
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so the histogram bars show the distance
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between the moving lines histogram is
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also a great way of detecting the
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momentum changes or if the current trend
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is getting stronger or weaker
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general consensus is if the histogram
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bars are under the zero line the red
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bars we are in a bearish momentum
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if the bars are over the zero line the
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green bars we are in a bullish momentum
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let's talk about the advantages and the
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disadvantages of macd
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one great momentum indicator this is
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what i like about mcd it really performs
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well as a momentum indicator i also have
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an indicator that i am coding for
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confirming momentum in the securities
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with macd
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2 great divergence indicator like rsi i
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find the macd a quite powerful
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divergence indicator it gives reliable
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results and confirms trend reversals
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i find to make the histogram more useful
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than moving averages however this is my
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personal choice
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3. great performance on high time frames
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investors love macd working great for
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time frames like one week one day 12
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hours eight or four hours if you are a
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swing trader this indicator could be a
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powerful tool for you
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you can use it for momentum or
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divergence trading
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disadvantages of macd
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one it's a lagging indicator to me it's
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an extremely slow indicator for entries
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you may try to adjust settings and play
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around to get a better performance
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however i never use it for my entries
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mcd is loved so much among beginner
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traders because of its ease of use
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however it's only a helping indicator
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for my strategies and nothing else
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two terrible buy sell indicator some
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people use the moving average crossovers
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as a buy style indication
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you may get lucky but trying to make
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consistent profits is almost impossible
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if you use macd as a buy sell indicator
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you may try it on really high time
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frames like one day or one week
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to improve your chances
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three full performance on low time
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frames i see some people try to use this
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indicator for scalping in one two three
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minutes
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i'm not against anything if you can do
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it good for you however in my eyes there
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are much more amazing and easier ways to
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sculpt
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okay let's check the time frames to use
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actually you can use this strategy with
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most time frames except scalping because
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macd could be quite slow and choppy for
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sculpting i would never use macd with
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one two three minutes
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other than that it's great for high time
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frames and some intraday time frames if
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you are interested in day trading
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trading setup with other indicators
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first of all i disable macd line and the
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signal line they are way too slow for me
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i only use histogram in the strategy
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all other settings are in default as you
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can see the next indicator that i use is
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support resistance dynamic i love this
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indicator i have talked about this
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indicator a lot in my best trading build
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indicators video
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normally i also use the volume profile
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as well to determine support and
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resistance levels since it's a paid
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indicator you can stick to
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the support resistance dynamic indicator
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now my settings are on the screen as you
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can see these are tested settings for
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accurate results my third indicator is
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volume i need volume bars to confirm the
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ending value which i will describe in
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the example soon
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i also use the moving average for the
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volume so i can see volume spikes and
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high relative volume it's generally set
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to 14.
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[Music]
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so the step-by-step strategy is on the
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screen as you can see i'll go over it in
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the example right now
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some steps are optional they are just
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for supporting this strategy
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now if you remember my hope greed regret
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and fear infographic
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hope is the best time to enter at rate
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with reduced risk and better
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opportunities
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this is why i love pullback breakouts
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because my risks are more manageable
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if i lose money it's little however if i
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make money it's mostly a lot with a home
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runner
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the first thing i do is draw a pullback
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or downtrend line
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now as you can see the sellers are quite
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in control this is a bearish momentum
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what i look for is three touch points in
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the pullback or downtrend line for a
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strong and confirmed one the next thing
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i need to understand if the sellers are
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getting weak or not
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so i can enter a hopped rate with a
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possible home runner
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so how do you understand it sellers are
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getting weak and buyers taking control
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this is where macd histogram comes into
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play
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i look for these red hills under the
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zero line
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are these hills getting smaller or
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bigger with this bearish momentum
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that is the main question if they get
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smaller
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it means that in this bearish momentum
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sailors are getting exhausted with each
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swing and trend may reverse
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this is similar to my rsi and momentum
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boxes strategy
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i don't care about divergences or hidden
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divergences i do not check them but you
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can check it if you would like to as you
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can see there's a previous divergence
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with the histogram
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what i only care about is if the sellers
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are getting exhausted and losing the
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momentum or not
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this is the key of this macd trading
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strategy
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in the next step i look for if there is
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a recent support line which price can
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bounce from
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if i use a volume profile i look for a
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high volume note you may also call it as
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volume cluster
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so seeing a support bounce is important
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this gives me an extra layer of comfort
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for the trait
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i also check out volume bars this is an
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optional step
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when a trend is about to reverse or give
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a reaction after a sharp drop you will
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generally see a rising volume or a
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significant volume spikes
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we traders call this ending volume when
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i see this kind of volume i know that
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there will be at least a reaction
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or even a trend reversal maybe but
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nothing is certain it could also mean
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that sellers are getting stronger and
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may push the price down again finally
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the entry record from the pullback or
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downtrend line
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since i have multi-step confirmations i
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only look for a green candle stick with
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a strong body to enter at rate
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as you can see this is my entry
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candlestick
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my stop loss order is below the pullback
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line because the price may come back and
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re-test this line again
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my take profit order is around 1.5 or 2r
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depending on the risk that you are
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willing to take
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now let's check how the trade went
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by the way this was my technical
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teaching video in my next video i'll go
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over for five different examples of this
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strategy
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please subscribe to channel for the next
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video
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[Music]
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okay folks i hope that you can use this
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top make the trading strategy easily
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i've tested and used this method so many
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times this is what i do in my day or
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saving trading life with stocks and
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crypto features would you like to
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subscribe the channel and help me to
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grow it thank you take care and see you
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soon