Deeper Insights

A good practice to remember with the MACD is to pay attention to where the moving average and signal line are in relation to the zero line. The yellow line represents the zero line. When the MACD lines are above it, I start looking for buy opportunities. When they are below it, I start looking for sell opportunities.

That does not mean you should blindly buy or sell just because the indicator is above or below the line. You still need to analyze the market structure and make sure the trade is coming from a proven zone that supports the direction you want to take.

The MACD can give you a strong directional clue, but the zone and structure are what give the signal real value.

See that cluster of candles? Short expiration times can get caught in areas like this often. Don’t be afraid to use longer trade times for your entries, especially when price is moving through choppy or crowded structure.

Sometimes the direction can be right, but the expiry is too short for the trade to play out cleanly. Giving the trade more time can help you avoid getting knocked out by small stalls, wicks, or hesitation before price makes the move you were expecting.