OK now let's apply everything you've learned in the previous lesson by going through some real world
examples as you can see on the screen.
We have a Mac oscillator at the bottom of the chart.
We have three important lines here.
The blue line is the Mac D line.
The orange line is the signal line and the red line is the zero line.
We had an up signal here when the Mac D line crossed above the signal line and both lines were sloping
up.
This could tell us that the previous downtrend would end soon and the price was going to go back up
shortly.
The trend reversed when the EMEA 9 crossed above the EMJ 20 and the uptrend signal was stronger when
the Mac D crossed above the zero line.
As I've mentioned in the previous video.
When the Mac D is above the zero line that EMJ 9 is likely above that EMJ 50.
This shows us a stronger uptrend signal because the EMJ 50 can act as a dynamic support that helps push
the price up.
You see when the Mac D crossed above the zero line we also had the EMEA 9 above the EMJ 50.
Now I want you to take note of this.
You had better use the Mac D indicator as a way to identify trend reversals not a way to determine when
to buy or sell your coin.
So what do I mean by that.
Similar to the parabolic essay indicator.
The Mac can show you many false buy and sell signals if you don't know how to use a properly.
You see the Mac D line crossed below the signal line several times here but the trend was still going
up.
Why.
Because the overall trend was still going up.
The EMEA 9 was above the EMJ 20 and DMA 50 and we also had a support level at around 30000 Santoshi.
That trend could only reverse when the price could break down through the support level.
So to avoid these false signals you'll need to use the Mac D along with the trend following indicator
like the exponential moving average as you can see the Mac D could show us a faster cell signal than
the exponential moving average.
So whenever you see the Mac D line crossing below the signal line you should be wary because the trend
can reverse shortly.
And we'll use the EMJ crossover strategy to confirm the next market direction.
You see the Mac line crossed below the signal line again here and both line started sloping down.
By this time the EMEA 9 also crossed below that EMJ 20 so we could easily predict that the price was
going to drop soon and when the price dropped below the support level and the Mac crossed below the
zero line we could confirm that this was a strong downtrend.
The trend reversed when the Mac D line crossed above the signal line.
Here we get confirm the uptrend when the EMJ 9 crossed above the EMJ 20 and the uptrend signal was stronger
when the Mac crossed above the zero line.
As you can see on the chart the price failed to break up through the support level at around thirty
thousand Satoshi So this means that the old support now became a new resistance that prevented the price
from rising up.
So what I would do in this case is to wait for several days to see if the price could break up through
that resistance if it couldn't.
It was likely that the trend was going to reverse.
We had a stronger trend reversal signal when the Mac D line crossed below the signal line here and we
could confirm that this was a strong downtrend when the EMJ 9 crossed below that EMJ 20 and the Mac
D line cross-bow the 0 line here.
So by looking at this chart you can easily predict if this coin is going up or down in value.
And with this information you can just buy low and then sell high.
You can make a lot of money
OK.
Now let's have a look at another example.
As you can see on the screen we had an uptrend signal here when the Mac D line or the blue line crossed
above the signal line or the orange line.
The IIM-A 9 also crossed above that EMJ 20 and the Mac D was above the zero line so we could easily
guess that this was a strong uptrend.
Next the Mac line crossed below the signal line but that EMJ 9 didn't cross below that EMJ 20 yet so
we would need to be patient and wait for another signal.
You see we had a resistance level here at about 980 Santoshi so we could guess that the trend would
likely reverse.
And in this case you could sell your coin to protect your profit.
The downtrend was confirmed when that EMJ nine crossed below that EMJ 20.
The trend reversed again when the Mac line crossed above the signal line and EMEA 9 also crossed above
that you may 20.
So we could confirm this was a valid uptrend.
The uptrend signal was stronger when the Mac D stayed above the zero line now I want you to take note
of this the downtrend signal will be weaker when the Mac is above the zero line.
That's because when the Mac is above the zero line that IIM-A nine is likely above that EMJ 50 as well.
So that EMJ 50 can act as a dynamic support that helps push the price up.
So that's why you see the Mac D line crossed below the signal line here.
But the trend was still going up.
The Mac D line crossed below the signal line again but this time the Mac D line crossed below the zero
line as well.
The EMEA 9 also crossed below that EMJ 20 so we could confirm that this was a strong downtrend.
Next the Mac D line crossed above the signal line here.
So this might tell us that the trend would reverse soon.
And what I would do now in this case is to wait until the EMJ 9 crosses above that EMH 20 and the Mac
D line also crosses above the zero line and when that happens I'll get in the market again and buy back
this coin at a lower price.
OK here's another example.
Now that you're familiar with the Mac D oscillator.
Let's analyze this chart quickly.
You see we had a strong downtrend signal here the Mac line crossed below the signal line and the zero
line the EMJ 9 also cross below that EMJ 20 and May 50 was above that EMJ 9 and EMJ 20 as well.
So this was a strong downtrend as you can see on the chart.
The Mac D line crossed above the signal line here but the trend was still going down.
So I want you to take note of this.
The up trend signal is weaker when the Mac D is below the zero line.
Why.
It's because when the Mac D is below the 0 line it's likely that that EMJ 9 is also below that EMJ 50.
So chances are that EMJ 50 can act as a dynamic resistance that can stop the price rising up the EMJ
9 cross below that EMJ 20 again here.
So we knew that the price was going to drop further.
Next we had an uptrend signal here.
When the Mac D line crossed above the signal line that EMJ 9 crossed above the EMJ 20 and the Mac D
crossed above the zero line so we could confirm that this was a strong uptrend.
The trend reversed when the Mac D line crossed below the signal line here.
In addition the EMJ 9 crossed below that EMJ 20 in the Mac D cross below the zero line.
So this was a strong downtrend.
The trend reversed again when the Mac D line crossed above the signal line here.
You see the Mac D also crossed above the zero on the EMJ nine crossed above EMJ 20.
Both lines started sloping up.
So this is a very good buying opportunity because we know that the price is going to go up in the next
few days.
OK now let's take another example.
As you can see on the screen we had a strong uptrend signal here the Mac line crossed above the signal
line and the zero line and the EMJ nine crossed above the EMJ 20.
So in seeing these signals we could easily predict that the price was going to go up.
The trend reversed when the Mac D line crossed below the signal line here that EMJ 9 also cross below
that EMJ 20 the downtrend signal was stronger when the EMJ 9 and IIM-A 20 cross below that EMJ 50 and
the Mac line crossed below the zero line.
We had another uptrend signal here when the Mac line crossed above the signal line again.
The uptrend was confirmed when IIM-A 9 crossed above the EMH 20 and the Mac D crossed above the zero
line.
We had a trend reversal signal here when the Mac D line crossed below the signal line.
The trend will be confirmed when the EMJ 9 crosses below that EMH 20 and the Mac D crosses below the
0 line.
So now you've learned everything you need to know about the Mac D indicator.
This indicator can show many false signals.
So make sure you're using it with the exponential moving average in the parabolic essay or indicator
to determine market trends.