Indicators for Avoiding False Breakouts 🔪😭
Ойын-сауық
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Overview
The MACD ("Moving Average Convergence/Divergence") is a trend following momentum indicator that shows the relationship between two moving averages of prices. The MACD was developed by Gerald Appel, publisher of Systems and Forecasts.
The MACD is the difference between a 26-day and 12-day exponential moving average. A 9-day exponential moving average, called the "signal" (or "trigger") line is plotted on top of the MACD to show buy/sell opportunities. (Appel specifies exponential moving averages as percentages. Thus, he refers to these three moving averages as 7.5%, 15%, and 20% respectively.)
Interpretation
The MACD proves most effective in wide-swinging trading markets. There are three popular ways to use the MACD: crossovers, overbought/oversold conditions, and divergences.
Crossover:
The basic MACD trading rule is to sell when the MACD falls below its signal line. Similarly, a buy signal occurs when the MACD rises above its signal line. It is also popular to buy/sell when the MACD goes above/below zero.
Overbought/Oversold Conditions:
The MACD is also useful as an overbought/oversold indicator. When the shorter moving average pulls away dramatically from the longer moving average (i.e., the MACD rises), it is likely that the security price is overextending and will soon return to more realistic levels. MACD overbought and oversold conditions exist vary from security to security.
Divergences:
A indication that an end to the current trend may be near occurs when the MACD diverges from the security. A bearish divergence occurs when the MACD is making new lows while prices fail to reach new lows. A bullish divergence occurs when the MACD is making new highs while prices fail to reach new highs. Both of these divergences are most significant when they occur at relatively overbought/oversold levels.
Calculation
The MACD is calculated by subtracting the value of a 26-day exponential moving average from a 12-day exponential moving average. A 9-day dotted exponential moving average of the MACD (the "signal" line) is then plotted on top of the MACD.
Information was from the eSignal description of MACD, and was derived, Technical Analysis from A to Z by S.B.Achelis
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Chapters:
00:00 Introduction
01:38 Focus on trading when there is the most reward potential
02:15 Adding MACD and focusing on Front Side
03:50 A fraction of nothing is...
04:39 Avoid Trades when MACD is BELOW Signal Line
05:00 Standard MACD Settings
06:16 Defining MACD
08:59 Focusing on trading the big momentum zones
10:21 Avoid Trades Below VWAP
13:11 Avoid Stocks with History of False Breakouts
16:21 Don't overtrade past the clean move
21:59 Examples of Avoiding False Breakouts
25:13 Trade the best, leave the rest!
26:06 Focus on 15-20 cents per share per day
#daytrading #warriortrading #rosscameron #stocks #learntotrade
Warrior Trading // Ross Cameron // Day Trade Warrior
Пікірлер: 334
Download the Micro Pullback Strategy PDF and other great free resources here warrior.app/technical-analysis-series-gifts thanks for tuning in!!
@DJVijilante
Жыл бұрын
Ross you know how to replicate the MACD you are using in this video on Think or Swim?
@ryand7g
Жыл бұрын
@@DJVijilante Good question. I spent quite a while in TOS and was unable get the MACD to look like Ross's.
@julesbar3545
Жыл бұрын
Thank you Bro
@jayrod9979
Жыл бұрын
l am glad you explained how you use MACD oscillator ndicator and think I picked up some valuable information. We will see how it goes next week
This was SO helpful! Massive mindset shift happened for me watching this. Thank you!! x
@DaytradeWarrior
Жыл бұрын
You're welcome!
Thanks Ross! I’m following and viewing your videos multiple times daily. As a retired Navy Officer I commend you on your professionalism and your strong communication skills. I’m a swing and long trader, but also I’m now interested in “day” after listening and following you. Thanks again for sharing all of your knowledge!!
@DaytradeWarrior
Жыл бұрын
You're welcome Steven!
Thanks Ross! I've been running into this issue recently and you helped shed light on how to approach it. Definitely will pay closer attention to my MACD.
@DaytradeWarrior
Жыл бұрын
You're welcome Jeffrey!
Hey Ross with this tool and the others you have explained in the past I already avoided a false breakout and a confirmed a failed flag as it developed. One of the best videos from you.
@DaytradeWarrior
Жыл бұрын
Thank you!
I think your videos have become incredibly better, Ross! This content is superb!!
@DaytradeWarrior
Жыл бұрын
Love to hear that, thanks!
Thank you Ross. Very informational. Best teacher.
@DaytradeWarrior
Жыл бұрын
You're welcome Roberto!
Ross I will say it as many times as possible, You are the best teacher out here in KZread! 💯
@DaytradeWarrior
Жыл бұрын
Appreciate that!
Another great video from the best teacher and day trader online. Thank you Ross.
Ross I wanted to say what you’re doing is great but more so that your personal communication skills are extraordinary. I know we often don’t hear thanks enough and as a ft trader myself I’m not a instructor of how to’s. In fact I am terrible at it and overly technical. I refer people to you and your series of videos because I know they will learn and enjoy watching your clarity and enthusiasm. It is magnetic. For anyone new to trading that is reading Ross really explains properly what you need to do as a new trader.
@DaytradeWarrior
Жыл бұрын
Appreciate the Due, glad that you think so!
Thanks Ross, great content as usual!!! Thanks for taking the time to provide more valuable information!!!!
@DaytradeWarrior
Жыл бұрын
My pleasure!
I've been day trading for a few years now, and FOR ME, personally, there is one golden-rule above all else: Don't get greedy & go against the trend. SO many times I'll see (what I think are) SURE FIRE SIGNS that a trend shift is about to transpire! But, I end-up being incorrect, oh, about 90% of the time (if not more.)
@DaytradeWarrior
Жыл бұрын
👍🤓
Thank you Ross. I really needed to hear this.
@DaytradeWarrior
Жыл бұрын
You're welcome!
Ross, Thank you for everything you do to help people struggling. Your a great teacher.
@DaytradeWarrior
Жыл бұрын
You're welcome and thank you Eric!
Very good info about how to use the MACD. This is something I've wondered about. I'll be adding it to my charts for sure. Thank you
@DaytradeWarrior
Жыл бұрын
You're welcome Michael!
Thank you for this Ross!
@DaytradeWarrior
Жыл бұрын
You're welcome Aaron!
This video really produced my first BIG AHA! MOMENT in learning about trading and how to read a chart properly. INCREDIBLY helpful. As always. Such a priceless gift we get on the daily from this man!
Hi, Ross. This video is very useful. As a beginner trader, i also get caught by false breakouts and always wanted to know how to at least try to avoid them. I really appreciate your work input for your KZread viewers. And i also find your website really useful. Thank you so much! By the way, i started small account challenge on my demo account with 500$ on Friday, because i got inspired by your small account challenge videos. After 3 days, I’m at 662$ point 👌🏻 Your advices for small accounts are really useful! 👍🏻
@LAMBO_AKUMA
Жыл бұрын
What platform are you trading on if you dont mind me asking. Im looking for one atm. Used webull for paper trading. Ready to start a small account but i heard cash cant day trade
@DaytradeWarrior
Жыл бұрын
You're welcome!
Ross, I just saw this video today. If I had seen it a year ago, I could have avoided losses, saved a lot of time, and not missed opportunities. Thanks.
Thanks for your videos. Is easy to learn from you
@DaytradeWarrior
Жыл бұрын
You're welcome!
Thank you my great teacher
@DaytradeWarrior
Жыл бұрын
You're welcome!
Fantasticlly valuable video. Ross, you are a great teacher.
@DaytradeWarrior
Жыл бұрын
Thank you!
Very good video. Lots of info not found on other MACD videos I've seen.
@DaytradeWarrior
Жыл бұрын
Thank you!
Dear Ross great as always. Thank you so much.
@DaytradeWarrior
Жыл бұрын
You're welcome!
If I had seen your video 30 minutes earlier I would not take a position at APDN (thanks to stop loss, I only lost 1% of my small account). Please keep sharing videos like this, it really helps people !
@DaytradeWarrior
Жыл бұрын
👍🤓
That 20cents advice was great! Thank you !!
@DaytradeWarrior
Жыл бұрын
You're welcome!
Thank you, that was a very helpful lesson. 👍👍
@DaytradeWarrior
Жыл бұрын
You're welcome!
Thank you, Ross!
@DaytradeWarrior
Жыл бұрын
You're welcome Surio!
great video. You mentioned a lot of what I needed to hear. I will watch more of your videos. Very good advice. Thanks.
@DaytradeWarrior
Жыл бұрын
You're welcome!
Ross, I can't thank you enough. You have helped me become a good trader and I'm getting better every day. I loved your warrior trader program. A MUST if you want to learn how to day trade. I hear you in my head daily and this helps me from losing money. This video is great too!
@DaytradeWarrior
Жыл бұрын
You're welcome Zofia!
Thanks. Much needed info for me.
@DaytradeWarrior
Жыл бұрын
You're welcome!
Great video Ross! Thank you
@DaytradeWarrior
Жыл бұрын
Thanks for the comment!
Thank you Ross, Amazing!
@DaytradeWarrior
Жыл бұрын
Glad you liked it!
Excellent! Thank You!
@DaytradeWarrior
Жыл бұрын
You're welcome!
Excellent video Ross! Thanks again.
@DaytradeWarrior
9 ай бұрын
Thanks Ryan!
Thank you for this video sir Ross. This is super duper helpful
@DaytradeWarrior
Жыл бұрын
Glad to hear that!
Great lesson Ross! Thanks as always!👍🏼
@DaytradeWarrior
Жыл бұрын
You're welcome!
I just watched this video for the third time. I've learned so much from your youtube channel and now subscribed to DTD. Thank you for putting this content out - I'm in the "sideways" phase of learning trading, but I'm sure I'll be hitting a decent daily goal soon, even in these horrible market conditions. I will sign up for the Warrior Pro course when I can.
@DaytradeWarrior
Жыл бұрын
Love to hear it! Look forward to you joining. 🙂
Thanks for the insight
@DaytradeWarrior
Жыл бұрын
You're welcome!
Thanks just lost some cash due to choppy action and then a drop. I’m usually saying why why where are you going but now I know why. I’ll try the MACD approach. Thank you so much.
@DaytradeWarrior
Жыл бұрын
You're welcome Wesley!
Yes, this is very helpful. very good thanks
Thank you Ross. Thank you for taking your time to explain and answering the whys and when’s of the would be questions we as newbies my ask. I would like to see how do you select stocks to trade everyday. And which stocks to keep an eye on and for how long do you keep an eye on it ! Please help. Can you sell a lesson dedicated to stock selection ?
@DaytradeWarrior
Жыл бұрын
You're welcome Fernando and yes we can!
This is the second time I watched this video. Your videos are worth watching multiple times.
@DaytradeWarrior
Жыл бұрын
Appreciate that, glad they're helpful!
Nice job Ross, thank you.
@DaytradeWarrior
Жыл бұрын
You're welcome Justin!
Thanks Ross your insight is super helpful , superb content
@DaytradeWarrior
Жыл бұрын
Glad it was helpful!
Thank you! So glad Ive found you! Having watched gazillions of trading videos on KZread I vote this one of the TOP.. not confusing... easy to follow.. people can tell you care!
@DaytradeWarrior
Жыл бұрын
Awesome, thank you!
Thanks for the heads up.
@DaytradeWarrior
Жыл бұрын
You're welcome Brad!
Thanks for sharing great refresher . I liked # 2 on false break out history very good point 👍 I alway say if it looks like a porcupine don’t grab it lol👍👍👍. 🥂
@DaytradeWarrior
Жыл бұрын
Thanks for watching!
Great stuff Ross! Thx
@DaytradeWarrior
Жыл бұрын
You're welcome!
This is a perfect assessment of what AMTD was on this day, i traded it premarket, kept watch of it but it did not showed me what i needed to see. I find it's also very obvious on the L2/T&S but that one is kinda hard to explain i find hehe, good video!
@DaytradeWarrior
Жыл бұрын
Thank you!
👍Thanks, that's a perennially useful tip about looking for a history of false breakouts. 👍
@DaytradeWarrior
Жыл бұрын
You're welcome Jonathan!
Thank u 4 showing the macd never looked at it but its really a good indicator.
@DaytradeWarrior
Жыл бұрын
You're welcome!
You're awesome...love the 20 cents theory
@DaytradeWarrior
Жыл бұрын
Happy to help 🙂
good stuff Ross!
@DaytradeWarrior
Жыл бұрын
Thanks!
im 18 yrs old and i just started getting into trading your videos have definitely left me with a lot more information than i had prior and i hope i can continue to grow and learn with your help im glad to have found you
Thanks so much. I have been chasing false breakouts of late, forgetting all of my discipline. Been trying too hard to find good trades in this volatile market
@DaytradeWarrior
Жыл бұрын
Glad it was helpful!
I truly enjoy your videos. I am going to try the 0.02cents per day approach. Thanks
@DaytradeWarrior
Жыл бұрын
You're welcome!
This is awesome I’m learning valuable information I’m really newbie want to learn!!
@DaytradeWarrior
Жыл бұрын
Glad it was helpful!
Thank you! 🤗
@DaytradeWarrior
Жыл бұрын
You're welcome Julia!
Great video very helpful
@DaytradeWarrior
Жыл бұрын
Thank you!
Great info Cameron
@DaytradeWarrior
Жыл бұрын
Glad it was helpful!
Thanks Ross!
@DaytradeWarrior
Жыл бұрын
You bet!
Well, I’m learning something. I traded the false break you illustrated :-). I was irritated and inpatient, ran a scan, found the stock and jumped in right behind the HOD peak after it had run-up and retraced four times. I got out fast enough to lose $40 vs $400 but kicked myself once I figured out what happened. The words you used today were exactly the same as mine as I reviewed my trade. This is good news. Not great but at least you are rubbing off on me through these videos.
@DaytradeWarrior
Жыл бұрын
That's great to hear!
Thank you!
@DaytradeWarrior
Жыл бұрын
You're welcome Lucia!
Great video, thank you! What moving averages do you recommend setting the fast and slow length variables to on the Macd? Thanks again ☀️
@DaytradeWarrior
Жыл бұрын
Ross uses the default MACD settings: 12 fast, 26 slow length, 9 smoothing (12,26,9). This is using the Simple Moving average. When displaying the indicator, Ross likes to display only the histogram. Every platform might be slightly different in how this is added or edited. Please contact your platform provider if you have issues with this.
NO CAP YOU ARE THE BEST STOCK TEACHER
Very useful I got caught I. Sum flushes now I know what to look out for thanx coach
@DaytradeWarrior
Жыл бұрын
👍🤓
😀awesome Ross, Thanks so much very usefull
@DaytradeWarrior
Жыл бұрын
You're welcome MJ!
SUPER - thanks!
@DaytradeWarrior
Жыл бұрын
You're welcome!
Good video, Ross
@DaytradeWarrior
Жыл бұрын
Thank you!
Great Indicator
@DaytradeWarrior
Жыл бұрын
👍🤓
I’ve got good news and I’ve got great news. The good news is that I took some great profits on ALT this morning. The great news is I used your method that you demonstrate here and it helped me avoid that next loosing trade. Thank you so much for sharing. Subscribed!
@DaytradeWarrior
Жыл бұрын
Thanks for sharing! So great to hear that!
@whatsap3215
Жыл бұрын
Hit me up 👆
as always thanks ross
@DaytradeWarrior
Жыл бұрын
You're welcome Matt!
I found a false break on the backside my very next trade day. Big candle to a doji to a flush. But I knew better, thanks to you.
@DaytradeWarrior
Жыл бұрын
You're welcome!
You are a phenomenal teacher. I'm a beginner and what I have learned in theory through your videos in such a short time is unparalleled.
@DaytradeWarrior
Жыл бұрын
Thank you Syed!
great tutorial, about Day trade DASH, can you offer the livestream as a standalone service on a monthly basis? (don't need the scanners and chatroom)
@zacshelton1448
Жыл бұрын
Spam^^^^^
@DaytradeWarrior
Жыл бұрын
Thanks Mark!
Amazing video. True professional. Ross I tried setting up the MACD to look like yours but no success. You only have the histogram and Signal line on? We’d appreciate it if you can share how to get set up like that
@DaytradeWarrior
Жыл бұрын
Ross uses the default MACD settings: 12 fast, 26 slow length, 9 smoothing (12,26,9). This is using the Simple Moving average. When displaying the indicator, Ross likes to display the fast and slow lines as a histogram. Every platform might be slightly different in how this is added or edited. Please contact your platform provider if you have issues with this.
@DaytradeWarrior
Жыл бұрын
Ross uses the default MACD settings: 12 fast, 26 slow length, 9 smoothing (12,26,9). This is using the Simple Moving average. When displaying the indicator, Ross likes to display the fast and slow lines as a histogram. Every platform might be slightly different in how this is added or edited. Please contact your platform provider if you have issues with this.
great video
@DaytradeWarrior
Жыл бұрын
Thank you David!
Hey Ross - this was a great educational video. I am on your intro $20.00 2 wk course and loving it and quite sure I will be taking the Warrior Pro Course. I am a new trader and been checking out many You-Tube Videos from many different traders and educators and yours are the best by a long shot. I really loved your video on education - that one should be pushed way out there and made to go viral. Best, Mike Rock - new trader
@DaytradeWarrior
Жыл бұрын
Thanks a lot Mike!
@whatsap3215
Жыл бұрын
Hit me up 👆
I just wanted to say that I thought the thumbnail for this video was perfect, and really funny! haha. :)
thank you
Thanks Ross Total Pro 🔥
@DaytradeWarrior
Жыл бұрын
You're welcome!!
nice lesson thanks
@DaytradeWarrior
Жыл бұрын
You're welcome!!
Thanks ross
@DaytradeWarrior
Жыл бұрын
You're welcome!
Ross I am new to the game but I have learnt so much..I have been successful in a simulator for a while. May go live in '24
@DaytradeWarrior
Жыл бұрын
Awesome to hear Yar! Keep at it.
Thanks for all your videos Ross. You have helped me to improve my trading enormously this year, despite the bear market.
@DaytradeWarrior
Жыл бұрын
We're glad you enjoy them!
Ross, you are my go to whenever I find myself making losing trades! Thank You for your knowledge. It has helped me so much!
@DaytradeWarrior
10 ай бұрын
Happy to help!
Thanx coach ross
@DaytradeWarrior
Жыл бұрын
You're welcome Danny!
Ross is the GOAT💪🏾
@DaytradeWarrior
Жыл бұрын
👍🤓
Just amazing 👏 😍 🙌 ❤️
@DaytradeWarrior
Жыл бұрын
Thank you!
Great video Ross, I was wondering what the chart was. Have you thought about shorting a stock on the reverse of your buy indicators, or is that just too risky?
@DaytradeWarrior
Жыл бұрын
Thank you! Ross prefers to rely on moving averages, volume, and simple, clean price action. He does not like to rely on Bollinger bands, stochastics, or Fibonacci levels because he does not find them meaningful for his style of momentum trading. However, these indicators work well in other trading styles, some of which are taught in the Warrior Pro course!
Great info thanks for sharing. Do you ever trade futures? Or just stick with stocks?
@DaytradeWarrior
Жыл бұрын
Happy to help! Ross does not trade future, he only trades equities.
Hi Ross! Thanks for the amazing content! What setting do you prefer for displaying MACD in the ThinkorSwim app?
@DaytradeWarrior
Жыл бұрын
Happy to share! Ross uses the standard MACD settings!
I never really use bottom charts. Sometimes rsi is good for knowing when a move is over. Anything over 85 or 90 is cooked. Also seeing what value on the rsi the stock tops at, I use 5 min chart. Nothing for my 1 min chart maybe I'll try macd
@DaytradeWarrior
Жыл бұрын
Thanks for the thoughts!
You must be reading the tape at the same time as reading indicators ross, I think it would be great if you could interlink this and explain what your seeing and/or looking for on the tape during these moves? Cheers
@DaytradeWarrior
Жыл бұрын
If you haven't had a chance to attend yet, one of the best ways to learn more on this would be to join us in the next Warrior Trading webinar. The webinar is free to join, and you will receive a copy of Ross' best selling ebook "How To Day Trade" just for sticking around until the Q&A! You can learn more and register here, if you're interested: www.warriortrading.com/free-day-trading-class/
Does anyone know exactly how he created that histogram from the MACD? Number settings weighted vs exponential etc. I can't figure out how to get that overlap. Thank you.
@Steven-ji7sc
Жыл бұрын
Depends on your broker, look at @5:13 and you will his setup to do this.
@DaytradeWarrior
Жыл бұрын
Thanks Steven!
Hi @Warrior trading where the algorithm spike trading lecture I can not find it by that name. What is the right title for the video
@DaytradeWarrior
Жыл бұрын
That is available to our Warrior Pro members. If you haven't had a chance to attend yet, one of the best ways to learn more would be to join us in the next Warrior Trading webinar. The webinar is free to join, and you will receive a copy of Ross' best selling ebook "How To Day Trade" just for sticking around until the Q&A! You can learn more and register here, if you're interested: www.warriortrading.com/free-day-trading-class/
Hi Ross: Thank you for your time and for putting a lot of energy into teaching us. I wish I find you when I started last summer. Now, with your explanation, do you think I have to sell my MEGL of 1554 shares at $12? Is that possible, to take your time and talk with you? please let me know. Kind wishes
@DaytradeWarrior
Жыл бұрын
Hey Tarbiyat, If you haven't had a chance to attend yet, one of the best ways to learn how to get started with trading would be to join us in the next Warrior Trading webinar. The webinar is free to join, and you will receive a copy of Ross' best selling ebook "How To Day Trade" just for sticking around until the Q&A! You can learn more and register here, if you're interested: www.warriortrading.com/free-day-trading-class/
Live action and what happened already in the chart u pointing out are different. Right of the false break out area u pointed out, the upper mAcd line going upward, after prices falling down a period of time they will drag the upper line downward. Sometimes price go up like the second mountain on your chart, sometimes price drag down u never know, if I know u get so rich. U need more indicator to confirm it is a false break out, with MACD only u can’t predict the break out or get out of the false break out earlier.
@DaytradeWarrior
Жыл бұрын
🤓👍
Interesting to know you incorporate the MACD during more questionable periods of the market. Quite honestly, the MACD is something I've usually had on my charts. If there was ever a time I trialed a new strategy without it, the MACD has eventually found its way back into the equation.
@DaytradeWarrior
Жыл бұрын
👍🤓
@whatsap3215
Жыл бұрын
Hit me up 👆