WEBVTT 00:05.660 --> 00:12.500 OK the next technical indicator that I want to share with you in this course is the Mac D Mac D stands 00:12.500 --> 00:15.590 for moving average convergence divergence. 00:15.590 --> 00:20.930 It's a trend following indicator that shows you the relationship between two exponential moving averages 00:21.620 --> 00:23.460 for trading crypto currencies. 00:23.480 --> 00:29.840 We'll use the nine day EMJ in the 50 day EMJ when using this indicator. 00:29.890 --> 00:35.590 There are three important lines that you'll need to take into account the Mac D line the signal line 00:35.890 --> 00:42.010 and the zero line by looking at these lines you can easily spot incoming market trends. 00:42.120 --> 00:46.470 You can determine whether a coin is going up or down in value in the near future. 00:47.440 --> 00:49.460 The first line is the Mac line. 00:49.510 --> 00:54.670 It's calculated by subtracting the 50 day EMJ from the nine day EMJ. 00:54.670 --> 01:01.890 It's simply the difference between that EMJ 9 and that EMJ 50 after the Mac díaz calculated the nine 01:01.890 --> 01:09.090 day EMJ of the Mac D line is then plotted with the indicator to act as a signal line or a trigger for 01:09.090 --> 01:13.600 buy and sell signals in the final line is the zero line. 01:13.750 --> 01:19.890 The zero line is simply a line that separates positive and negative values within the oscillator and 01:19.890 --> 01:24.520 the good news is you won't have to do any calculations. 01:24.550 --> 01:27.210 Most trading tools will help you draw these lines. 01:27.210 --> 01:33.600 So now you just need to know what they are and how to apply them. 01:33.630 --> 01:36.300 Here's what the Mac indicator looks like. 01:36.660 --> 01:40.480 As you can see on the screen the orange line is the signal line. 01:40.560 --> 01:48.440 The blue line is the Mac line and the line that separates negative and positive values is the zero line. 01:48.480 --> 01:51.790 So how can we use this indicator to spot market trends. 01:54.480 --> 01:58.610 There are two ways that you can use the Mac D for trading crypto currencies. 01:58.650 --> 02:05.510 The first one is to use the Mac D line and signal line crossover strategy to spot a market move. 02:05.520 --> 02:10.800 This strategy is simple but it's very helpful and it's quite similar to the moving average crossover 02:10.800 --> 02:13.740 strategy that you've learned in the previous lessons. 02:14.420 --> 02:20.720 Ok here's an up turn signal when the Mac D line crosses above the signal line and both lines are sloping 02:20.720 --> 02:21.410 up. 02:21.410 --> 02:24.140 Chances are we're in an uptrend. 02:24.320 --> 02:31.100 So what you want to do now is to buy a coin and take advantage of the trend to make a profit and on 02:31.100 --> 02:37.520 the other hand when the Magdaline crosses below the signal line and both line start sloping down. 02:37.520 --> 02:40.460 This tells us that the price is going to drop soon. 02:40.490 --> 02:46.190 So in this case we'll consider selling our coin and wait for an opportunity when the trend reverses 02:46.460 --> 02:49.060 to buy a back at a lower price. 02:49.070 --> 02:50.480 Easy right. 02:50.480 --> 02:56.080 If you've mastered how to use the exponential moving averages this strategy is exactly the same. 02:56.510 --> 03:04.150 But the interesting thing is the Mac can show faster buy and sell signals and the second strategy is 03:04.150 --> 03:08.960 the Mac D line crossing above or below the 0 line. 03:09.210 --> 03:11.990 When the Mac D line crosses above the zero line. 03:12.000 --> 03:14.970 This shows us a stronger uptrend signal. 03:14.970 --> 03:21.480 Do you know why it's because most of the time when the Mac D line is above the zero line that EMJ 9 03:21.480 --> 03:24.310 is likely above the EMJ 50. 03:24.340 --> 03:30.120 This shows us a stronger uptrend signal because that EMJ 50 can act as a dynamic support that helps 03:30.120 --> 03:33.360 push the price up and vice versa. 03:33.390 --> 03:36.210 When the Macchi line crosses below the zero line. 03:36.360 --> 03:43.320 This shows us a stronger downtrend signal because in this case the EMI 9 is likely below that EMJ 50 03:43.680 --> 03:49.920 so that EMJ 50 can act as a dynamic resistance that prevents the price from rising up. 03:49.970 --> 03:56.030 If you still have no idea about how this strategy works and don't worry we'll dive into a lot of examples 03:56.180 --> 03:57.410 in the next lecture. 03:58.470 --> 04:05.150 OK now let's find out how to setup the Mac indicator to add the Mac D oscillator to the chart you simply 04:05.150 --> 04:09.790 click on indicators and then type Mac D in the search box. 04:09.800 --> 04:12.330 Now click on Mac D to added to the chart. 04:14.310 --> 04:18.850 To change the settings of this indicator you can click on the gear button here. 04:19.050 --> 04:20.730 Now click on the inputs tab 04:23.440 --> 04:27.920 we'll use that EMJ 9 and EMJ 50 for calculating the Mac D. 04:28.180 --> 04:34.720 The 9 day EMJ is a faster moving average and the 50 day is the slower one. 04:34.850 --> 04:42.320 So we simply change the fast length to 9 and the slow length to 50 and then click OK. 04:42.560 --> 04:49.020 After you do you'll find the Mac D oscillator at the bottom of the chart in the next video will go through 04:49.020 --> 04:52.560 some examples so you can master how to use this indicator.