the macd indicator an absolute Staple in the trading World used by millions every single day but if you've used the macd before you'll notice it comes with a slight flop you see the macd is great when the market is trending it actually does a pretty good job but when the market starts consolidating and moving sideways just the slightest bit well let's say the macd performs not so good and I've got to say in all honesty um it's the biggest piece of dog but what if I told you I found a brand new indicator that is basically the Super Ultra Mega upgraded version of the macd and it performs way better I actually tested this indicator and it performed three times as good as the normal macd which if you can do the math that means more profit which we all like I'm gonna show you what this indicator is the best settings for it and at the end of the video I'll give you a secret strategy you can use right now in order to use this thing to the best of its capabilities let's not waste any time let's get straight into it so to understand this absolute overpowered indicator we first have to understand the normal macd with the normal macd when this blue line crosses above the orange line or when the histogram turns green that means the market is bullish and uptrend this is where you would normally buy when the Blue Line crosses below the orange line and the histogram is red that means the market is bearish and has down Trend this is where you would normally sell now any monkey with a computer could do the strategy but the major downside of this specific strategy is that it does not work well in consolidating markets for example here the Blue Line crossed above the Orange Line giving us a Buy Signal but if we look above the market is consolidating at this time so the indicator wasn't so accurate which if we actually entered this trade it would have been a bad signal and we would have lost money whoa whoa whoa whoa whoa whoa whoa wait hey hey hey hey hey hey now what if I told you that this new and upgraded version of the macd indicator will eliminate these false signals so we only get entry signals when the market is trending that would be pretty cool right well I'm about to blow your mind first go to trading view I'll leave a link in the description once you're on the chart go to the indicators tab type in impulse macd and click this one by lazy bear you will then have the indicator added to your chart foreign as you can see it looks super Advanced and just a tad bit complicated with all these different colors let me show you the settings I personally use so it's just a tad bit easier to read go to the settings of the indicator make sure you're on the style tab first change all these colors to Blue then make sure to change the formatting to a line next change this impulse histo setting to red and make sure the formatting is set to columns then finally we are going to change the color of the impulse macd signal to Orange this will make the indicator look just like the original macd indicator and make it a lot easier to read the signals so let's move on how to read this indicator and then after that I'll go over an actual strategy you can Implement and use right now okay so where do we start wait a minute do I see that my chart it looks a little weird you guys really don't see that here let me zoom in it's still kind of small let's zoom in just a little bit more wait a minute is that is that Joe Biden yes trading lab it is me the flamingo version of Joe Biden what why are you up you know what never mind what are you doing on my chart I want to tell you about my broker that has only four percent commissions they are pretty Dandy Joe you're an idiot your commissions are huge my broker's commissions are only two percent Donald get out of the video this is my time to shine your old you don't know how to trade Forex guys guys I'm sorry to tell you but both of your Brokers don't sound that good rather than having four percent commissions or two percent commissions on hanker trade you can get zero percent commissions Yes you heard me correct zero percent commissions for STP accounts beating almost every Forex broker out of the water if you need a new Forex broker and want good commission rates I would a hundred percent recommend checking them out you get a deposit bonus if you use the link in my description okay okay enough with the sponsor ship let's get back to the strategy now what makes this indicator so superior to the original macd is this instead of like the original macd where it gives you false signals when the market is consolidating with this upgraded version it won't give you signals at all when the market is Consolidated it will only give you signals when the market is trending making it perform way better than the original macd indicator nice so the strategy is simple it's kind of like the old macd when the Blue Line crosses above the orange line that is signaling there's bullish momentum and you should buy when the Blue Line crosses below the Orange Line This is signaling there's bearish momentum and you should sell when the lines are moving sideways like this that indicates the market is consolidating and you should not be taking any trades Now using these signals works pretty well but there's some little tweaks we can make to make it perform so much better let's get into some actual strategies we can use around first thing we want to add overbought or oversold zones to our indicator you can do this by simply clicking this line tool on the left and clicking anywhere on the new macd indicator we are going to add two lines an over Soul line and an overbought line we'll make the oversold line green and make the overbought line red now you may be asking how the hell do I know what level to put these lines good question if we take take a look at the indicator closely there's going to be some minor crossovers that don't go far from the zero line and we're also going to have some major crossovers that happen far away from the zero line essentially the smaller this crossover is the weaker it is so if we want to only enter strong signals we need a way to separate the minor in major crossovers to do this just zoom out on your chart and then you're going to see some minor Crossovers and some major crossovers draw a horizontal line separating them for this specific example my line is at the negative 8. 24 level so that's the oversold line for the overbought line you're going to use the exact same number just make it the positive version of the first number so the strategy is simple we only want to enter trades once the indicator gives us a buy or sell signal that is outside or overbought in oversold zones here's an example here the Blue Line crossed above the orange line but if we take a closer look it happened between the zones meaning it's a weak signal so we don't enter this long trade good thing we didn't because it would have been a losing trade and we would have lost money here's another example the Blue Line once again crossed above the orange line but this time it did it below or oversold zone so we can now consider this a strong bicycle we enter here set your stop loss right below the recent swing low and you're gonna set your take profit ratio 1. 5 times larger than your stop loss and as you can see it was a beautiful winning trade let's do one more example then I'll show you how we can improve this even more here the Blue Line crosses below the Orange Line it also did this above our overbought zone so this means we can now enter a short trade enter here set your stop loss above the recent swing High set your take profit 1.
5 times larger than your stop loss and just like that we have another winning trade a quick tip about the specific strategy instead of using a set 1. 5 risk to reward ratio you can have a dynamic take profit what I mean by this is this all the rules are the same so if the Blue Line crosses above the Orange Line in the oversold Zone you enter but instead of setting a set take profit you would only sell once the Blue Line crosses below the Orange Line giving you a sell signal this will allow bigger winners and allow the indicator to write the momentum more feel free to do your take profit strategy either way just thought I'd share that as well the final strategy I like using with this indicator is how I personally use it on a day-to-day basis I like to use this indicator for finding breakouts this is how I do it first you want to look for a strong Market consolidation you can do that by simply looking at the new macd indicator and looking for the blue and orange line to be moving sideways for a long period of time like this it is very important that it's been doing this for a while because we want a strong consolidation we don't want the indicator to just be moving sideways for a little bit like this because this can provide a false signal so look for for the indicator to give a sideways line for a good period of time like this the reason why we are looking for a consolidation period is because whenever price breaks consolidating zones it usually jumps up or down a huge amount which we can then try to catch that wave and ride that momentum for some huge profit dude you get the best barrels ever dude just like you pull in and you just get spit right out of them and you just drop in and just smack a little or back the cool thing about this breakout strategy is whenever the price does break out it really breaks out resulting in some really crazy gains so this is how you do it you wait for the market to be consolidating by checking the macd indicator and make sure the lines are moving sideways for a good amount of time now there are some ways you can significantly increase the chance of catching a breakout what I like to do is pair this new macd with my private indicator from tradinglab.
