MACD Forex Indicators Guide

New rule! Also are cryptocurrencies an investment, will there be a crash? Everything answered here!

This is going to be the only crypto post for now and an announcement:
Rule 6: Bitcoins & cryptocurrenies should be discussed in CryptoCurrency. Posts regarding this topic will be automatically removed.
If there's a stock correlated with cryptocurrencies, like coinbase going IPO, then that's fine, you might have to message the mods after posting to have it approved, no big deal.
Also if you're questioning whether something is an investment or not, just search for it on personalfinance. For general currency trading strategies, see forex .
If you're wondering if bitcoins are an investment or if there will be a crash, read on.

Are cryptocurrencies an investment?

This post is going to deal with bitcoins & cryptocurrencies as an investment... they're more speculative. All currencies are speculative mostly due to how the forex market works, but more because of exchange rates between countries keep currencies balanced (including inflation, country debt, interest rates, political & economic stability, etc), so you can only profit in price fluctuations.
Sure you could buy the currency of a depressed country, like Mexico decades ago, and then hold in the hopes it'll go up (which it did for Mexico), but that's also speculation (no one knew Mexico would pay off so much debt).
Bitcoins are also affected by other countries' currency values, but more so by the future expectation of legitimacy, world wide adoption, limited gains from mining, and eventual limit in supply. But at any given moment the United States could pay off more debt, raise interest rates to reduce inflation (or cause deflation), grow GDP, or even reduce the supply of USD all of which would increase the value of USD (keep in mind bitcoins can't do any of these things).
Far too many people are treating cryptocoins as an investment because currently (June 5th 2017) a lot of crypto investors are worth a lot of money, god bless you people, so this post will also help you determine if we're headed for a crypto crash and maybe you can keep those profits.

Should I invest in cryptocurrencies?

Understand that an investment is something you hope will go up in the future or provide income, both of which for the long term vs speculation which profits on short term inefficiencies.
Speculative securities are typically commodities, options, bonds, and currencies, but also stocks that are volatile enough to give you extreme returns or extreme loses.

Examples of investments:

Examples of speculation:

Reducing the risk of speculation

Typically for speculation you reduce risk by reducing your trade size and timeframe, but since you're trying to invest into something that is speculative, you can try:
Asset allocation, a strategy that reduces risk.. If you're 80% stocks, 15% bonds, 4% gold, and 1% bitcoins, if something were to happen to bitcoins, you still have 99% of your money.
But even very aggressive long term portfolios leave speculation out completely and just go 100% stocks because stocks benefit from growth while speculative securities like gold benefit from global turmoil in the short term. Only mid risk & mid term portfolios can take advantage of gold's speculative returns.
I also mention asset allocation because many crypto investors have been using this strategy on a portfolio of 100% crypto coins, but that doesn't help you reduce the overall risk of crypto coins, you're just reducing the risk of 1 speculative asset with another speculative asset. 100% crypto portfolio would face the same risks such as being made illegal, IRS aggressively hunting down crypto profits, a drop in correlated coin markets, or just a loss of popularity would all cause a sell off. Even the USD or Chinese currencies becoming more valuable would reduce the value of crypto coins.

Should I buy coins right now?

Cryptocoins are a better investment after a period of consolidation when volatility has stabilized:

Bitcoin 2013/2014 speculation, chart

Bitcoin 2015 consolidation, chart

Source Bitstamp exchange, while the volume is #2 to GDAX, Bitstamp is better to look at for historical price/data, more charts here.

RSI & MACD key for above charts and primer

Analyzing overbought signals

So the first chart above have RSI & MACD screaming that bitcoin is overbought and you shouldn't invest in 2013/2014.
The black squares in the 2nd chart show consolidation and reduced volatility, a "better" time to invest. If you were trading short term, it would be a whole different story, and there would be opportunities to buy & short, but since this is written for investing, the small overbought signals are ignored, so if you were to buy Bitcoin at $300 inside the first blacksquare (2nd chart) and then it suddenly drops to 25%, it's okay because the volatility is much lower compared to previous price movements (nothing compared to 80% loss in the 1st chart). Any investor would tell you a 25% drop is terrible, but bitcoins are speculative and that kind of drop is pretty damn good for this level of volatility.

Nothing goes straight up forever

and anything that comes near this vertical incline will eventually lose 80% to near 100%, always happens, it's usually preceded by emotions (price euphoria), attention, and increased volume, all classic signs that something is becoming riskier.
Other speculative securities gaining multiples and then losing 80% to near 100% of value:

Notable comments on reddit:

*This is just to get you guys looking at different subs on this topic, and yeah it's mostly anti-crypto, but don't let that discourage you.

Is Bitcoin going to crash?

Maybe, the signals are getting louder, you tell me: The only chart you wanted to see this entire time.
So based on the above chart, is bitcoin overbought? MACD levels are the same as 2013's crash, but the increased in value is around 4.3x or 2.4x (depending on which you look at), so maybe we'll see another spike before a crash, I don't know, it's up to interpretation right now. There's the emotional price levels of 3000 and 4000 that we might have no problem getting to in an overbought environment before a correction. And how big will the correction be? I think 80%, but it very well could be around 50% down to $1200, the previous level of resistance which would become support.
I put everything above in its own wiki here.
Well I hope that helps everyone. Sorry to anyone that may feel butthurt on classifying cryptocoins as speculation, I hope you understand the facts. Feel free to argue or agree with this. If I made any mistakes and you point them out, I'll correct them and give you credit for it in an update to this post and the wiki.
Also the automod will is just going to blanket remove posts (not comments) with the following keywords {crypto, bitcoin, btc, etherium, altcoin} (see update 4 below) (this will eventually get relaxed if Coinbase ever IPOs) and then it'll send the user this message:
"Sorry your post[link] was removed in stocks because of rule 6: Bitcoins & cryptocurrenies should be discussed in CryptoCurrency. You can find more information in our are-cryptocurrencies-investments wiki. If you're trying to discuss a non-OTC stock related to cryptocoins like Coinbase IPO, or this was just a mistake, message the mods and they'll approve your post, thanks."
Update: Created wiki, added relevant websites and sub reddits. Also turned on automod reply.
Update2: those relavant websites and subreddits I put into the wiki, thanks u/dross99 for recommending ethereum

Relevant websites/wikis

Relevant subreddits

  • CryptoCurrency - main sub to learn about all bit & altcoins
  • ethtrader - trading eth
  • ethereum - for more eth information
  • btc - the place to have bitcoin discussions or r/CryptoCurrency; while Bitcoin does have a lot of information on Bitcoins in general, you'll find many reddit subs completely opposed to Bitcoin for heavy censorship of discussions, especially those critical of bitcoins, so you're better off reading the sub's wikis and discussing bitcoins in btc & r/CryptoCurrency
  • personalfinance
Update3: Shoutout to the mods on CryptoCurrency
Update4: Updated auto mod keywords, it's not a blanket catch all, a little completed to understand if you don't know regex but it looks like this
"crypto ?(trading|investing)","(should(| I)|could(| I)|can(| I)|how to|is it worth) (buy|sell|mine|min)(|ing) (btc|btcs|bitcoin|ether|etherium|eth|litecoin|ripple|altcoin)" 
submitted by provoko to stocks [link] [comments]

r/Stocks Technicals Tuesday - Dec 25, 2018

Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information:
Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:
Measure: Is the security's price trending, has it dipped or is it a falling knife? Interpret: Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? Predict: If price reaches a certain point, will there be a rally or get rejected?
The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.
TA is best used for short term trading, but can also be used for long term.
Intro to technical analysis by Stockcharts chartschool and their article on candlesticks
Terminology
Useful indicators
Methods or Systems
Strategies: See the TA wiki here as this will be a work in progress, feel free to reply with your own strategy.
See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.
submitted by AutoModerator to stocks [link] [comments]

r/Stocks Technicals Tuesday - Nov 27, 2018

Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information:
Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:
Measure: Is the security's price trending, has it dipped or is it a falling knife? Interpret: Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? Predict: If price reaches a certain point, will there be a rally or get rejected?
The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.
TA is best used for short term trading, but can also be used for long term.
Intro to technical analysis by Stockcharts chartschool and their article on candlesticks
Terminology
Useful indicators
Methods or Systems
Strategies: See the TA wiki here as this will be a work in progress, feel free to reply with your own strategy.
See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.
submitted by AutoModerator to stocks [link] [comments]

r/Stocks Technicals Tuesday - Dec 11, 2018

Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information:
Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:
Measure: Is the security's price trending, has it dipped or is it a falling knife? Interpret: Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? Predict: If price reaches a certain point, will there be a rally or get rejected?
The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.
TA is best used for short term trading, but can also be used for long term.
Intro to technical analysis by Stockcharts chartschool and their article on candlesticks
Terminology
Useful indicators
Methods or Systems
Strategies: See the TA wiki here as this will be a work in progress, feel free to reply with your own strategy.
See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.
submitted by AutoModerator to stocks [link] [comments]

r/Stocks Technicals Tuesday - Dec 18, 2018

Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information:
Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:
Measure: Is the security's price trending, has it dipped or is it a falling knife? Interpret: Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? Predict: If price reaches a certain point, will there be a rally or get rejected?
The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.
TA is best used for short term trading, but can also be used for long term.
Intro to technical analysis by Stockcharts chartschool and their article on candlesticks
Terminology
Useful indicators
Methods or Systems
Strategies: See the TA wiki here as this will be a work in progress, feel free to reply with your own strategy.
See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.
submitted by AutoModerator to stocks [link] [comments]

r/Stocks Technicals Tuesday - Dec 04, 2018

Feel free to talk about technical analysis here (not argue against it), but before you ask any question make sure you see the following information:
Technical analysis (TA) uses historical price movements, real time data, indicators based on math and/or statistics, and charts; all of which help measure the trajectory of a security. TA can also be used to interpret the actions of other market participants and predict their actions:
Measure: Is the security's price trending, has it dipped or is it a falling knife? Interpret: Does the current price mean investors think it's undervalued or overvalued; when did they buy/sell more and why? Predict: If price reaches a certain point, will there be a rally or get rejected?
The main benefit to TA is that everything shows up in the price (commonly known as priced in): All news, investor sentiment, and changes to fundamentals are reflected in a security's price.
TA is best used for short term trading, but can also be used for long term.
Intro to technical analysis by Stockcharts chartschool and their article on candlesticks
Terminology
Useful indicators
Methods or Systems
Strategies: See the TA wiki here as this will be a work in progress, feel free to reply with your own strategy.
See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.
submitted by AutoModerator to stocks [link] [comments]

Forex Trading. What separates the Losers from the winners.

My name is Tom Burgoine and I am an engineer by trade however love Forex trading and have taken it up as a hobby. I have spent the last 5 years studying Forex and have had help from supposed traders teaching me the fundamentals of Forex trading. This was good as I got to know the basics and how all of the indicators worked and the terminology used etc. Once all of this was learnt, I then moved down the road of starting to trade. Straight away, I was losing money however the buzz of doing this gripped me and allowed me to keep pumping money in. I looked at various strategies given to me and none of them worked. I studied Elliot wave and although I have to agree with the markets moving in 5 and 3 waves, it became very hard to count the waves and at some points felt very contradictive of what I had been taught. It was almost like every rule, had an exception (Is it really a rule). After 3.5 grueling years of losing 40K, I then took a step back and re-evaluated. I asked myself what were the issues surrounding my losing? I know that my mentality was a problem. I was over trading and getting greedy when the wins came in. Secondly and most importantly, I realised that all of the teachings, lessons on indications, and other advice (Although welcomed and useful) was teaching me about reactive circumstances. The Indicators were reacting to market movement which meant by the time I jumped onto the trade, I had missed a bulk.
Being an engineering manager, I always try to find the Logic in things and like to know how they work quite in depth. I know, geekish, however, my mind works only in logic. I decided to try and find a way to be proactive in seeing the market turn rather than reactive and started looking into different tools and indicators. Finally in logically looking at how the market moves, I found the answer.
Market prices move with the pressure of the buyers and sellers purchasing or selling there currencies. I needed to find a way of knowing when the pressure of a market going up (Bullish) or the pressure of a market going down (Bearish) was tailing off, eventually resulting in a reverse. I looked at the indicators and found that momentum does this. I needed a second Indicator as well just to crosscheck what I was being told. I looked at the formula of the MACD indicator and thought the Histogram from the MACD indicator was very good. The moving average slapped on the top however was of no use. I then configured the MACD indicator to only show the histogram. So my Indicators were the momentum (Set to 12) and the Histogram from the MACD.
I traded on the daily as I wanted medium to long term trades. This prevented me and my mind from over-trading. I would look at the daily and would look at the direction of the price movement and the look at the pressure moving it. If the price and pressure (Indicated by the momentum and the histogram) were moving in the same direction then it was all good. The minute I saw the momentum and the Histogram starting to turn while the price still went in the same direction gave me my proactive indication that the market was about to turn. This is when I implemented my strategy. I then went to the 4 hr time frame and waited for the same thing to happen which then gave me an even tighter and closer proactive indication that the market was about to turn. once the 4 hr time frame gave me the same signal, I then moved to the 1 hourly until I received the same signal. I then got to the point of knowing within a couple of hours when the market was going to turn. I needed something extra that would allow me to enter my trade rather than trying to guess which hour was going to be the turning point. I then looked into a third indicator. Stochastics. Stochastics allowed me to see when the market was over bought or over sold. I waited until all of my Signals were in place and then waited for the stochastic to go over bought or over sold. I then entered on the hourly. This has turned my trading around. It has made me slow down my trading with consistent wins and mentally has put me in a better place. I have set up a you tube channel FX Logic, where I will be going through potential trades weekly using this method. I have a introductory video on there as well which talks you through the methodology discussed here with the charts right in front of you. There is no catch just a engineer trying to share his success. Subscribe to my channel and go through the process of growing your account with the community. https://www.youtube.com/watch?v=ldki7ddTwec&t=10s
submitted by ForexLogic to u/ForexLogic [link] [comments]

MT4 Shortcut Keyboard for Forex Traders

Forexkeyboard.com announced the launch of imperium forex trading keyboard designed by traders and made for traders, allowing them to make use of shortcuts keys to execute faster trades. The Imperium forex trading keyboard can person a whole lot of functions like buy, sell, close trades and set lot sizes. It can also perform chart functions like open new chart, zoom, show crosshair and change timeframe, as well as general functions like copy, backspace, delete and options windows. The keyboard and its EA will be launching January 2017, and it is free for the first 1000 users who pre-register on the website at www.forexkeyboard.com.
“The idea for a MetaTrader keyboard for traders first came from trader chat rooms and forums. The Imperium trading keyboard was designed by traders and suitable for scalpers, intraday and day traders. Currently, we are releasing a virtual keyboard, but our end game is to deliver a physical trading keyboard that will take forex trading to the next level,” said Alec Johns, Operations Director.
Forexkeyboard.com designed the Imperium forex trading keyboard to help MT4 and MT5 speed up their order navigation and execution. It provides unbeatable advantage for traders, by delivering scalper indicator and scalper trading system. Forexkeyboard.com also offer Scalper Pro Indicator with MACD Alert, CCI Histogram, and 200 EMA in a zip file. These templates of indicators goes beyond trends to provide a safe entry and exit trades when used together.
About forexkeyboard.com
Forexkeyboard.com was created to help forex traders access MetaTrader shortcut keys so that they can execute trades faster. The company is launching a virtual keyboard for traders, with the intentions of advancing to a physical keyboard that will suit every trading style. For more information, please contact [email protected], www.forexkeyboard.com.
submitted by discreteoryx to Forex [link] [comments]

Whether the Euro Will Continue the Uptrend?

Good news! The Euro was positive at the very first Forex trading day of 2012. Seen from the Forex daily chart of yesterday, the Euro once even broke out the resistance line 1.3000. Wow, indeed, this piece of news brought Forex traders hope that the euro may possibly continue the uptrend in most time of the following year. Well, is it true? I am still going to share with you my analysis. Technical Forex Analysis On the Forex daily chart, the euro rebounded strongly and once even broke out the former resistance line 1.3000 and it seems that it may possibly continue its uptrend. We can see that the price is moving divergently with the EMA; moreover, on the MACD indicator, the histogram is moving closer to the zero line, indicating that the price is going upwards. According to my own Forex analysis, the resistance line is 1.3080, and the support line is 1.3000. Meanwhile I suggest that Forex traders consider setting stop loss orders right above the line 1.3100.
Fundamental Forex Analysis As usual, although up until now there is no new negative news released about the euro; Forex traders, especially institutions like banks are still wondering whether the euro can pick up its uptrend and they believe that the euro is going to move in recession first in the Forex market. Therefore, in the fundamental perspective, I am not that optimistic towards the trend of euro. In conclusion, I still suggest that Forex traders should trade calm and put their emotions down. Whatever good signals the Forex chart may show us, we might take the fundamental Forex analysis into consideration as well.
submitted by babafemibabafemi to Forex [link] [comments]

Trading MACD Histogram - YouTube The Secret Code of Successful MACD Trading (Forex & Stock ... MACD Crossover Forex Trading Strategymacd histogram simple forex trading strategies MACD with Histogram Forex MT5 Indicator MACD Indicator (It's Not Great, BUT....) - YouTube How to Use MACD Indicator - Simple Effective Forex Trading ... How to Interpret the MACD on a Trading Chart - YouTube

Chartanalyse MACD: Hier finden Sie die Erklärung zu dem Börsen-Begriff MACD MACD Histogram is a Metatrader 4 (MT4) indicator and the essence of the forex indicator is to transform the accumulated history data. MACD Histogram provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye . The further MACD line goes from zero line, the wider is the gap between 12EMA and 26 EMA on the chart. The closer MACD moves to zero line, the closer are 12 and 26 EMA. MACD histogram measures the distance between MACD line and MACD trigger line. MACD indicator Formula. MACD = EMA(Close)period1 - EMA(Close)period2 Signal Line = EMA(MACD)period3 ... MACD comes with the MACD-Histogram, but the MACD-Histogram can be shown as a stand-alone indicator. This makes it much easier to identify divergences and crossovers. The MACD-Histogram can be set as an indicator above, below or behind the price plot of the underlying security. The histogram covers a lot of chart space so it is often best to place it above or below the main window. It is ... Forex Kalender Market Heat Map Market Sentiment Indikation DAX30 Analyse EUR/USD Analyse Dow Jones Analyse Gold Analyse ... Quelle: MetaTrader 5 USDCAD H4 Chart mit MACD Indikator, Datenspanne: 25. September 2019 bis 8. November 2019, abgerufen am 8. November 2019 um 9.42 Uhr. Bitte beachten Sie: Vergangene Performances sind kein verlässlicher Indikator für zukünftige Ergebnisse. Eine ... This indicator is utilized to distinguish changes in exchange and changes in value that brokers can’t see without indicators. Macd 2 Color Histogram Divergence Indicator MT4. It is an indicator utilized as the quintessence for the Forex indicator and this indicator is additionally utilized as a history collector. It permits distinguishing ... The histogram or “bar chart” included in the background of the MACD (see images below) displays the difference between the MACD and signal line. When the MACD is above the signal line, the bar ...

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Trading MACD Histogram - YouTube

ForexMT4Indicators.com are a compilation of free download of forex strategies, forex systems, forex mt4 indicators, forex mt5 indicators, technical analysis and fundamental analysis in forex trading. The MACD is one of the most popular and broadly used trend-following indicators for Forex and stock trading. In this video you’ll discover: • what is MACD in... If playback doesn't begin shortly, try restarting your device. You're signed out. Videos you watch may be added to the TV's watch history and influence TV recommendations. To avoid this, cancel ... Trading MACD histogram indicator strategy using divergences and convergences in momentum. http://www.topdogtrading.net/youtubeorganic-trading MACD histogram ... How to Use MACD Indicator - Simple Effective Forex Trading Strategies Explained Understanding the MACD Indicator The MACD indicator is typically placed at th... MACD is one of the most used technical indicators in Forex. MACD stays for Moving Average Convergence Divergence. The indicator consists of two lines and a histogram. The MACD indicator, also known as the Moving Average Convergence Divergence Indicator is a favorite amongst Forex traders. This is not a good sign. But if yo...

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