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MACD/Divergence Trading: How to Build a Profitable Trading System Using Moving Average Convergence-Divergence

MACD/Divergence Trading: How to Build a Profitable Trading System Using Moving Average Convergence-Divergence [Kindle Edition]

John Wilhelm
3.0 out of 5 stars  See all reviews (1 customer review)

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Product Description

Product Description

How To Build A Profitable Trading System Using Moving Average Convergence-Divergence

Numerous Detailed Diagrams, Candlestick Charts, and Specific Examples Included

In this book, you’ll learn about a simple, proven method of trading based on MACD. Not only will you learn what Moving Average Convergence-Divergence is but you’ll be taken—step-by-step—through how to put together a trading system based on MACD to help you generate consistent trading profits.

Here are some of the specifics you'll learn...

- What MACD is and how it works, including detailed explanations of Simple Moving Avergages, Exponential Moving Averages, MACD histograms, signal lines, and much more-- Chapter 1

- How MACD can be used to identify stocks that may be ready for a huge move upward-- Chapter 2

- How to use MACD for momentum trading-- Chapter 2

- Here's a specific real-life example where the price of a stock gapped out of a trading range right as the MACD line crossed the signal line (you don't want to miss this!)-- Chapter 3

- Exactly how to use MACD for trend following-- Chapter 3

- Step-by-step instructions for building a trading system using MACD-- Chapter 5

- 4 criteria for entered a long position based on MACD-- This strategy by itself is worth x1000 times the cost of this book and can help you identify massively profitable trades-- Chapter 5

- The concept of "divergence"-- You'll discover how this is a leading indicator and the absolute earliest warning of a possible reversal-- Chapter 6

- The 2 different kinds of divergence-- Chapter 6

- Over a dozen real-life candlestick chart examples and color diagrams-- Chapters 1-6

- And much much more!

Download your copy today!

Product details

  • Format: Kindle Edition
  • File Size: 887 KB
  • Print Length: 29 pages
  • Simultaneous Device Usage: Unlimited
  • Sold by: Amazon Media EU S.à r.l.
  • Language: English
  • Text-to-Speech: Enabled
  • X-Ray:
  • Average Customer Review: 3.0 out of 5 stars  See all reviews (1 customer review)
  • Amazon Bestsellers Rank: #315,813 Paid in Kindle Store (See Top 100 Paid in Kindle Store)
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3.0 out of 5 stars Not worth it. 25 July 2014
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Contains no more than can be found free on the web.
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Most Helpful Customer Reviews on (beta) 3.9 out of 5 stars  15 reviews
4 of 5 people found the following review helpful
2.0 out of 5 stars Meh 10 May 2014
By One Wolf - Published on
Verified Purchase
If you're going to write a 20 page book you should at least know how to read the months on the chart you're explaining. Book doesn't really teach you how to build a system based only on MACD. It does provide two simplistic models but even those have only 2 MACD components - they also include stochastics and candle reading which are not explained. Talks high level about various purposes of MACD beyond that but nothing particularly pragmatic.

It was worth the free price tag but wouldn't be worth three bucks.
1.0 out of 5 stars Very mis-leading title, not AT ALL about building a trading system 16 Aug 2014
By D. Lewis - Published on
For all intents and purposes, it's a book about an indicator, not building a trading system. When building a trading system, you need methods to: identify entry points, place protective stops and set profit targets. This book only shows cherry-picked entries using MACD and speaks nothing of how to set protective stops or profit targets. Entries shown are for trend continuation after a pullback and spotting possible reversals (i.e. divergences).

His description of divergences is somewhat lacking as a true divergence must crisscross the 0 line of the histogram. All his examples happen to do that but it's never stated anywhere. Many people will look at a chart and see a higher low on the second trough (or a lower high on the second trough) without the zero line being crossed and think it's a divergence; the book never covers that so right away you would be immediately confused. The very first example of a bullish divergence (BIDU) is incorrectly drawn; the first bullish divergence is not identified. The first signal should have been in December 2012 with price making lower lows and MACD making higher lows, it's completely ignored (even though it would have been a profitable trade using a real "trading system"). He choose to extend the line further to the next bullish divergence, most likely because it showed a huge gain. A divergence trader would have taken both trades. The easiest thing to do is use hindsight and pick charts where the pattern has worked beautifully, and that's what was done here. Creating a "trading system" book that shows no losing trades and only talks about entry signals and completely ignores stops and targets is pretty much worthless.

There are far better eBooks about MACD divergences, I'd recommend Alexander Elder's "Trading Divergences: Two Roads Diverged" as that title accurately describes the contents, which are accurate.
2 of 3 people found the following review helpful
3.0 out of 5 stars Very Detailed Look into Divergence Trading 30 April 2014
By Ellen McConnell - Published on
This quick guide is a tough read for someone just delving into the area of divergence trading. Although the many charts and graphs helped, it is a complex heavy read. Know your divergence terminology before reading this intermediate guide.
1 of 2 people found the following review helpful
5.0 out of 5 stars Generating Profit with a MACD based Trading System 24 May 2014
By TexasT - Published on
Moving Average Convergence/Divergence was developed by Gerald Appel in the late 70’s. It is one of the most popular technical indicators in trading. The MACD is appreciated by traders the world over for its simplicity and flexibility because it can be used either as a trend or momentum indicator. The concept behind the MACD is fairly straightforward. Essentially, it calculates the difference between an instrument's 26-day and 12-day exponential moving averages (EMA). Of the two moving averages that make up the MACD, the 12-day EMA is obviously the faster one, while the 26-day is slower. In the calculation of their values, both moving averages use the closing prices of whatever period is measured. On the MACD chart, a nine-day EMA of the MACD itself is plotted as well, and it acts as a trigger for buy and sell decisions. The MACD histogram is the main reason why so many traders rely on this indicator to measure momentum, because it responds to the speed of price movement. Most traders use the MACD indicator more frequently to determine the strength of the price move than to find the direction of a trend.
Trading is hardly ever black and white. Some rules that traders agree on, such as never adding to a loser, can be successfully broken to make a profit. But, a method for out maneuvering money management rules needs to be established before attempting to capture gains. In the case of the MACD histogram, trading the indicator instead of the price offers a new way to trade an old idea - divergence. Applying this method to the FX market, which allows effortless scaling up of positions, makes this idea even more intriguing to day traders and position traders alike.
The concept of MACD/Divergence Trading is not an easy one to understand especially for beginners, but, Wilhelm writes in such a way as to make it easier. A good read for serious traders!
3 of 5 people found the following review helpful
5.0 out of 5 stars Vigorous, brief and packed with knowledge! 4 May 2014
By Mystie - Published on
This vigorous, though brief guide is quite complex and packed with knowledge. If you’re interested in learning how to create a trading system using MACD then you will benefit by acquiring information for determining stock trends and momentums regarding this indicator.

If you are a newcomer to the world of trading like myself, I recommend that you read it at least twice! It’s brief and cuts right to it, and includes the visual aid of graphs as well as free additional material. You should also be able to grasp concepts related to Bull Put Spreads, Bear Put Spreads and Bear Ratio Spreads before delving into this book.
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