MACD + KDJ + RSI
Today’s Topic: MACD KDJ as our BFF.
Simple rule for me. MACD + KDJ can show entry and exit points depending on your trading strategy. If your planing to buy low sell high. This chart helps to illustrate, When KDJ is low and MACD is in the red range its a good period to buy low. Inversly to sell high.
*If you realised for MACD when your actually trading you can never know if your at the middle of the best period. You can only see when it starts to go red or green area. See below trading chart for a better idea of MACD red and green area. Don’t just use one TA to jump into a hasty/nasty decision.
I prefer to look at more TAs and added RSI into the mix. from my trades, I’ve bought when KDJ and RSI (Golden curve is below) is low and MACD is in the red.
Tip: change the color that works for you. I’ve made my KDJ and RSI show golden lines to remind me when its low. Works for me.
For those that believes in golden cross you can do that but personally i always feel its already too late to the party when you jump in at goldencross.
For this example that I’ve shared in another Post for MPO: I’ve selected the extreme 150 strike price, 1. sold Put and bought it back to take profit and 2. entered again to sell puts to either buy back again or wait for it to expire in the future. Observe the MACD + KDJ + RSI where I’ve traded. Hope it helps you to HUAT as well. ![]()
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For those that likes to understand more about MACD. Got AI to help phrase MACD better and how it is used. ![]()
1. MACD Line: The MACD indicator consists of two lines - the MACD line and the signal line. When the MACD line crosses above the signal line, it is considered a bullish signal, suggesting a potential buy opportunity. Conversely, when the MACD line crosses below the signal line, it indicates a bearish signal, signaling a potential sell opportunity.
2. MACD Histogram: The MACD histogram represents the difference between the MACD line and the signal line. When the histogram bars are above the zero line and expanding, it indicates increasing bullish momentum, suggesting a potential buy opportunity. Conversely, when the histogram bars are below the zero line and contracting, it suggests increasing bearish momentum, indicating a potential sell opportunity.
By analyzing the crossovers of the MACD line and the signal line, as well as the movements of the MACD histogram, traders can determine potential buy and sell signals to make informed trading decisions. However, it’s important to use MACD in conjunction with other technical indicators and analysis techniques for confirmation and risk management.
2. MACD Histogram: The MACD histogram represents the difference between the MACD line and the signal line. When the histogram bars are above the zero line and expanding, it indicates increasing bullish momentum, suggesting a potential buy opportunity. Conversely, when the histogram bars are below the zero line and contracting, it suggests increasing bearish momentum, indicating a potential sell opportunity.
By analyzing the crossovers of the MACD line and the signal line, as well as the movements of the MACD histogram, traders can determine potential buy and sell signals to make informed trading decisions. However, it’s important to use MACD in conjunction with other technical indicators and analysis techniques for confirmation and risk management.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Investing casually and learning as I go.
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