![]() Pullback in a trend: The MACD crosses the signal line in the opposite direction of the trend irregardless of when the trend change occurred. Use price action to time the entry after the pullback - you don't need to wait for the MACD to cross the signal line again. Buy or sell after the signal line has crossed the zero line and the MACD crosses the signal line for the first time after the trend change. First cross: This is basically selling or buying at the first pullback after a trend change. The signal line (red) acts as a trend indicator, with crossings of the zero line indicating trend changes, while the MACD line (blue) acts as a short term momentum indicator. Instead of the regular MACD settings, the this indicator uses simple moving averages, not exponential moving averages, and a setting of 3 for the fast MA, 10 for the slow MA and 16 for the signal line. This is a variation of MACD popularised by Linda Bradford Raschke.
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