Chart Decode Series: MACD-“Radar” detects the market and catches signals to early commands

May 5th Chart Decode Series: MACD-“Radar” detects the market and catches signals to early commands

Welcome to the Chart Decode Chain – Step by step to master technical indicators and price models like experts!

In the previous article, I discovered SMA & EMA. This has discovered two powerful tools for reading trends. This time, decode the MACD and decode the “measurement index” so traders can win the waves early in their price breakthrough!

input: MACD (average divergent dynamic).

So, what is a MACD?

MACD represents the divergence of moving average convergence – average divergence dynamic dynamic. Does it sound complicated? Don’t worry! Imagine that MACD is a market speedometer:

• Is the momentum/decrease sharp or weak?
• Can I reverse the price?

While SMA/EMA tells you “Where is the price?”MACD is revealed again “It’s strong or weak.”. This is a very fast tool to detect new trends before price responses become apparent!

MACD’s perfect team includes three parts.

1. MACD (blue line)

• “Momentum”: When prices change, this line is the first to dance!
• Increase = The buyer is energetic.
• Decline = Sellers dominate.

2. Signal sugar (orange sugar)

• “Siren”: Follow the MACD line.
• Green cut of orange = purchase signal (the Bulls win).
• Green falls under the orange = sales signal (bear side).

3. Chart bar (red/green bar)

These bars will be displayed Distance between green and orange roads.

How to read it like this:

• The bulge line = da is erupting!
• Shrinking the row = da is shaking!
• Green = cow is “blowing fire”
• Red = Bear is “flamed” ❄️

Why do traders love MACD?

• Early Wave: Detect new trends before prices come up.
• Determine in/out: Buy when momentum is increasing and profit when momentum is weak.
• Measures market strength: Are “sharks” accumulated or “flies” flowing?

Practical examples of BTC/USD

MACD indicator (table below):

• MACD Line (Green): 326
• Signal Line (CAM): –279
• Green cut in orange = signal increase speed
• The blue histogram is bulging = DA is bulging!
• Cut under the road 0 = signs of an early reversal!

Movement (main chart):

• EMA 20th (green): ~84,067
• MA 50 days (green): ~84,170
• Current BTC price: 87,269 => BTC is “flying” on both average lines = buyer side as playground.

Recipes from Veteran Traders:

Combine MACD + EMA/SMA to check the signal.

Use MACD near the support/resistance region for increased accuracy.

Do not use MACD if the market is horizontal – prone to “fake traps”!

Try it with Bitfinex:

• Log in to your Bitfinex account.
• Select a trading pair (for example: BTC/USD).
• Add “MACD” from the (Indicator) tab.

Remember what you need to follow!

Signal increase: Macd Please cut it off Signal road.

Signal reduction: Macd I’ll reduce it Signal road.

The histogram column is enlarged: The trend is stronger.

The histogram column is reduced: The trend is weaker.

This practice helps to train transactional intuition over time. That way you will act with confidence instead of that confusion.

MACD is loved by traders for simple reasons. It helps readers read the market before prices become clear! It’s like doing something “the wind changes” before the boat slides!

MACD vs SMA/EMA: What’s the real difference?

Next in the chart decoding series: RSI – How to know when the market is overloaded or own dies too much?

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