The MACD is a great indicator but like most, it is a lagging indicator. The MACD crossing above the 0 line is a good long entry. The MACD crossing below the 0 line is a good sell or short entry.
Where things really get interesting is if you use the MACD with the stochastic indicator. A good long signal is to use the MACD 12, 26, 5 with the stochastic 14,3.
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Watch the MACD Histogram for signs of peaking. Good indication. Not 100%, of course, but when today’s bar is shorter than yesterday’s, you may well be at a price peak. Reverse at the bottom. Also, try changing the periods of the traditional MACD. Cut them in half to make a faster MACD Histogram. Seems to be quicker to spot reversals.
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