how to use macd to form forex buy sell signal

How to Use MACD to Form Forex Buy Sell Signal

It will be very risky if you trade based on just one of the signal you have learn above. You will have a more robust forex strategy if you are able to combine these two signals above to constitute your buy sell signals.

MACD bot acha indicator hy es ko use kr ky easily buy aor sell keya ja skta hy yh bot acha signal daita hy,forex may jb tk signal na mly confirm tb tk kam nai krna chaye,forex best aor fast earning system hy es may long time ky ley earning ho skti hy agr knowledge ho tb.

MACD is a good indicator when it comes to buy sell signal as it always allow the trader to validate a trend line break or a breakout in price. With this function, MACD can help the trader to identify fake outs in trading.

ADX Indicator
Riding the trend is one of the most profitable trading strategies you can have as it is a good way of producing high risk reward ratio trade and the best way to find out the status of the trend is to make use of the forex adx indicator.

MACD bot acha indicator hy es ko use kr ky easily buy aor sell keya ja skta hy yh bot acha signal daita hy,forex may jb tk signal na mly confirm tb tk kam nai krna chaye,forex best aor fast earning system hy es may long time ky ley earning ho skti hy agr knowledge ho tb.

So Why ADX Indicator?

If you have been reading my blog, you will know that I have written an article to help you identify the trend of the market using various forex trend indicators like the moving averages.

The moving averages are still a good way to tell the trend but they are unable to give you a value for the trend and this is where the ADX indicator comes into play

What Is ADX Indicator?

It is an indicator that is made up of a single line with value ranging from 0 to 100. You may think that it looks like an oscillator but it is uni-directional. Unlike the oscillator which tells you that the market is moving up when it is pointing up and the market is moving down when it is pointing down, the ADX is only meaningful when it is pointing up and that’s why it is uni-directional.

If you take a close look at the picture below, you will find that the adx will point up when you are in a good uptrend as well as a downtrend

How to Use the ADX Indicator?

I personally use it to tell whether the market is trending or ranging. As stated in the earlier part of this post, the ADX has a range value from 0 to 100. When it is moving below the 25 level, it is telling you that the strength of the market is very weak. What usually happens at this time is that the market is in consolidation and will most probably be moving in a range.

When the indicator moves above the 25 level, it is telling you that the trend is strengthening and the larger the value, the stronger will be the trend. However to have a better understanding of the trend you are in, you need to combine the direction of the indicator together with its value.

Divergence:
Besides using the ADX indicator for telling the strength of the trend, you can also use the divergence of this indicator to warn you of possible retracement or reversal. If you have entered a LONG trade and you see the ADX making lower highs while the price make higher highs, this is a good time to exit your trade as a retracement or a reversal is going to occur

Breakout Strength:
You can also make use of this indicator to help you trade breakouts. The problem with most breakout traders is fake out which is the false movement of the market leading most inexperienced traders to enter a trade and then stopped them out by reversing the movement.