Trader's Whiteboard: Lesson 3

As you learned in the first Whiteboard lesson, the market will go up, down, or sideways. It’s possible to profit in any trend, but only if you know how.

Join Adam as he shows you how to pick out a trend, trade that trend, and what indicators can help you along the way.

There is no need to register to watch this lesson or this series and please feel free to share with friends and fellow traders.

Enjoy!

The MarketClub Team

Trending And Trading Markets – Finding The Best Indicators For Each

Today's guest is Karen Stanlake of RangeTraders.com. Karen is going to tell us about the difference between trading and trending markets and some tools she uses in each market condition.
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Markets will either trend or trade. That is, they either move up, down, or go sideways. A common mistake is applying the wrong indicator to the wrong market condition. That would be like wearing a winter coat on a July afternoon in Phoenix!

There are some strategies that do use both types of indicators simultaneously, usually on multiple time frames. That’s beyond the scope of this article, but here are some ideas to help ensure your charts are properly attired for the market you’ve chosen to analyze. Continue reading "Trending And Trading Markets – Finding The Best Indicators For Each"

Trader's Whiteboard: Lesson 3

As you learned in the first Whiteboard lesson, the market will go up, down, or sideways. It’s possible to profit in any trend, but only if you know how.

Join Adam as he shows you how to pick out a trend, trade that trend, and what indicators can help you along the way.

There is no need to register to watch this lesson or this series and please feel free to share with friends and fellow traders.

Enjoy!

The MarketClub Team

Traders Toolbox: Moving Average Convergence / Divergence (MACD)

MarketClub is known for our "Trade Triangle" technology. However, if you have used other technical analysis indicators previously, you can use a combination of the studies and other techniques in conjunction with the "Trade Triangles" to further confirm trends.

Developed by Gerald Appel, this indicator consists of two lines: a solid line called the MACD line and a solid line called the signal line. The MACD line consists of two exponential moving averages, while the signal line is composed of the MACD line smoothed by another exponential moving average.

To complete the standard calculation of the two lines, you must:

  1. Calculate a 12-period exponential moving average of closing prices
  2. Calculate a 26-period exponential moving average of closing prices
  3. Plot the difference between the two calculations above as a solid line. This is your MACD line.
  4. Calculate a nine-period exponential moving average of the MACD line and plot these results as a dashed line. This is your signal line.

MarketClub will do the above calculations for you. The MACD line is represented by a red solid line and the Signal line is represented by a green solid line. The default values for this study are set to the suggest values listed above.

The most useful signals generated from this system occur when the solid red (MACD) line crosses below the green solid line (Signal) and a sell signal occurs when it crosses above the signal line.

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You can learn more about the MACD and Gerald Appel by visiting INO TV.