Steemit Crypto Academy Season 2-Week6 | Cryptocurrency Trading with MACD indicator/ Por @marinmex

Homework Task 6 :

• What is the MACD indicator simply? Is the MACD Indicator Good for Trading Cryptocurrencies? Which is better, MACD or RSI?

-What is the MACD indicator simply?

MACD is an indicator developed by Gerald Appel during the 1970s, with which we can determine trends or changing trends, as well as whether an asset is overbought or oversold, we can see it as the difference between a short period fast exponential moving average (EMA) and a long period slow EMA.
Its name comes from the acronym Moving Average Convergence Divergence, MACD measures the convergence or divergence of is the average of two moving averages, to better understand its applicability we can explain it as a moving average convergence / divergence, where convergence means that the moving averages are approaching and divergence that the moving averages are moving away.

For its graphical identification it is constituted by three components:

• The MACD line, which measures the distance between two moving averages, generally between the 26 and the 12.
• The signal line, which detects changes in the momentum of a price and triggers buy and sell signals. It is an exponential average of the MACD and is generally used with 9 periods.
• The histogram, which represents the difference between the MACD and the signal line.

-Is the MACD Indicator Good for Trading Cryptocurrencies?

In the cryptocurrency market we find uptrends and downtrends, so to select our entries and exits from the market we require an indicator that helps us to determine these trends and the MACD is a special indicator for this, because it tells us the changes in the momentum of the price of an asset, which is important for making buy and sell decisions.

Which is better, MACD or RSI?

The RSI is an indicator that helps us determine the strength of the trend and two important levels such as overbought and oversold of an asset, which are generally set at 30 and 70, which indicate the time to sell when we pass the level of oversold and buy when we are at the level of oversold, but it has the disadvantage that the level reaches the maximum value and the price of the asset continues to rise and when it reaches the minimum the price continues to fall, which could make us make bad buying and selling decisions, imagine making a purchase when the RSI reaches zero and then the price continues to fall.
The MACD indicator shows us the strength of the trend and its direction, observing when the MACD line and the signal line cross we can determine a change of trend, which would give us a better signal to buy or sell, although in this case the MACD is better, it would be good to analyze the two together and thus have more elements for a better decision.

• How to add the MACD indicator to the chart, what are its settings, and ways to benefit from them? (Screenshot required)

I am going to use the binance page the exchange where I am learning to buy and sell coins, to make it easier I will use the mobile version, by default it has several indicators configured, we only have to turn it on and / or off, but if we want to change any settings we can do it, as I will show in the different images:

In my favorite currencies I have Steem, select to see graph.

I turn on the MACD indicator

I go to settings

Select indicators

Select MACD

In this menu I can change the values

*We can observe the different elements of the MACD indicator.

• How to use MACD with crossing MACD line and signal line? And How to use the MACD with the crossing of the zero line?

We can observe when the MACD line crosses the signal line, which indicates a change of trend from bullish to bearish and it is time to sell and then we observe that the line rises and cuts the signal line inidcando the change of trend from bearish to bullish and is a great time to buy, in this case is an example quemuestra that if we combine with the RSI indicator, we can have better positions of exit and entry, by the delay of the MACD indicator.

• How to detect a trend using the MACD? And how to filter out false signals? (Screenshot required)

To determine trend changes we have to observe when the MACD indicator meets the trend line, according to the direction we will know if it is upward or downward, of course sometimes the crossing may occur with some delay, but we can see it as the confirmation of the RSI indicator in case of combining them.

• How can the MACD indicator be used to extract points or support and resistance levels on the chart? Use an example to explain the strategy. (Screenshot required)

We are going to analyze the BTC/USDT pair, we can observe a resistance point and when the MACD indicator crosses the signal line the downward trend change occurs, we can also visualize the support point and observe the approach and crossing of the MACD occurring the trend change to the rise, this part was observed empirically, but now I have a theoretical basis to support it.

• Review the chart of any pair and present the various signals from the MACD. (Screenshot required)
I am going to review the CTK/USDT pair, on the Binance exchange:

Trend changes and support points can be observed, which helps us to select the entry and exit points of the game, combined with other indicators it is an excellent help to decide the entry and exit points with a good chance of obtaining excellent results.

Conclusions

The MACD indicator is a great support to select the time to buy or sell the selected pair, although I personally recommend that it be used in combination with other indicators such as the RSI. Being able to determine the trend and the change of trend is a tool that gives us a high percentage of security when making decisions.

Agradecido con Dios por la vida y por permitirnos disfrutar la alegría de nuestra familia
Un día familiar, gracias a Dios.
Siempre lo que pasa es lo mejor y Dios sabe lo que hace

Every day is to be thankful for the blessings we receive.
Thankful to God for life and for allowing us to enjoy the joy of our family.
A family day, thanks be to God.
Always what happens is for the best and God knows what he does.

No es fácil perseguir nuestros sueños, pero es imposible si no damos el primer paso.

A soñar y a trabajar…

Estar vivo, es disfrutar la vida en familia.
Unidos en familia es el mejor motor para salir adelante en la vida.

It is not easy to pursue our dreams, but it is impossible if we do not take the first step.
To dream and to work..
To be alive is to enjoy family life.
United as a family is the best engine to succeed in life.

Estimados lectores, agradecido con su valiosa visita y sus comentarios en mis publicaciones, ustedes alimentan y activan mi motivación para escribir, cada día es un motivo para agradecer a Dios por tantas bendiciones. Felicidad siempre

Dear readers, grateful with your valuable visit and your comments on my publications, you feed and activate my motivation to write, every day is a reason to thank God for so many blessings. Happiness always

Venezuela tierra de paz
Las fotografías utilizadas son propias.
Separador elaborado en PowerPoint
Emoticones de Bitmoji
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Translated with www.DeepL.com/Translator (free version)*
https://blog.iqoption.com/es/rsi-sma-macd-una-estrategia-para-cualquier-mercado/

https://www.tecnicasdetrading.com/2017/10/rsi-mejor-oscilador-precio-macd.html

https://www.avatrade.es/educacion/professional-trading-strategies/macd-trading-strategies

https://economipedia.com/definiciones/macd-indicador.html

https://www.ig.com/es/glosario-trading/definicion-de-indicador-macd
https://economipedia.com/definiciones/macd-indicador.html