Part 19 - The MACD

This is another indicator used with the SM to determine divergence. The macd is just the difference between 2 moving averages.I use the moving average of the MACD, which gives me a smoother line.

To take a trade the signal must def have macd divergence, its the one indicator that must comply on all signals.

Here is an example of the MACD and how it helps filter out signals that could well move against us.