The 50-day Simple Moving Average (SMA) is a widely used technical indicator in trading, providing a smoothed view of price trends over a medium-term period. Traders often use the 50 SMA to identify the overall market direction: if the price is consistently above the 50 SMA, it suggests a bullish trend, whereas prices below indicate a bearish sentiment.
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This moving average helps filter out short-term fluctuations, allowing traders to focus on more significant price movements and trend confirmation. Many traders use it as a dynamic support or resistance level, especially in trending markets.
The Moving Average Convergence Divergence (MACD) is another powerful tool used to measure momentum and trend strength. It consists of two lines—the MACD line and the signal line—and a histogram that shows the difference between the two. When the MACD line crosses above the signal line, it is often considered a buy signal, while a cross below may indicate a sell signal. The MACD is especially useful in identifying potential entry and exit points when markets are showing signs of a reversal or acceleration in momentum, making it a complementary indicator to trend-based tools like the 50 SMA.
Combining the 50 SMA with the MACD provides a strategic edge by aligning trend direction with momentum shifts. For example, a trader might look for a MACD bullish crossover only when the price is above the 50 SMA, increasing the probability of a successful long trade. Similarly, bearish MACD signals are more reliable when the price is trading below the 50 SMA. This dual-confirmation approach helps reduce false signals and ensures that trades are taken in the direction of the prevailing trend, improving overall risk management and consistency in trading decisions. Would you like a chart example showing how these indicators work together?
Learn how to day trade. This video is dedicated to 'everyday' folks starting out with a smaller account - think $1000 or less. Like starting any career, there is a lot to learn when you're a day trading beginner. Here are some tips to steer you in the right direction as you start your journey. These tips will get you setup with the proper indicators and settings and strategy, help you decide what to trade and when to trade, show you how much capital you need, how to manage risk, and how to practice a day trading strategy effectively.
We're currently in our 13th year helping traders become successful in the live markets so we know a thing or two about leveraging a small account into serious wins.
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Risk Disclaimer:
Trading options involves financial risk and may not be appropriate for all investors. The information presented here is for information and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument. Any trading decisions that you make are solely your responsibility.
Trade On Pocket Option: http://pocketoptioncapital.com
This moving average helps filter out short-term fluctuations, allowing traders to focus on more significant price movements and trend confirmation. Many traders use it as a dynamic support or resistance level, especially in trending markets.
The Moving Average Convergence Divergence (MACD) is another powerful tool used to measure momentum and trend strength. It consists of two lines—the MACD line and the signal line—and a histogram that shows the difference between the two. When the MACD line crosses above the signal line, it is often considered a buy signal, while a cross below may indicate a sell signal. The MACD is especially useful in identifying potential entry and exit points when markets are showing signs of a reversal or acceleration in momentum, making it a complementary indicator to trend-based tools like the 50 SMA.
Combining the 50 SMA with the MACD provides a strategic edge by aligning trend direction with momentum shifts. For example, a trader might look for a MACD bullish crossover only when the price is above the 50 SMA, increasing the probability of a successful long trade. Similarly, bearish MACD signals are more reliable when the price is trading below the 50 SMA. This dual-confirmation approach helps reduce false signals and ensures that trades are taken in the direction of the prevailing trend, improving overall risk management and consistency in trading decisions. Would you like a chart example showing how these indicators work together?
Learn how to day trade. This video is dedicated to 'everyday' folks starting out with a smaller account - think $1000 or less. Like starting any career, there is a lot to learn when you're a day trading beginner. Here are some tips to steer you in the right direction as you start your journey. These tips will get you setup with the proper indicators and settings and strategy, help you decide what to trade and when to trade, show you how much capital you need, how to manage risk, and how to practice a day trading strategy effectively.
We're currently in our 13th year helping traders become successful in the live markets so we know a thing or two about leveraging a small account into serious wins.
Open Account: http://pocketoptioncapital.com
Risk Disclaimer:
Trading options involves financial risk and may not be appropriate for all investors. The information presented here is for information and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument. Any trading decisions that you make are solely your responsibility.
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LearningTranscript
00:00This isn't a show. There's no guessing game here. No got lucky moments. Today it's all about strategy, logic and precise execution.
00:12I'm starting with $15,000, placing $1,000 per trade and working with a system that delivers real results.
00:21No tricks, just analysis and profit. If you're tired of watching others make money, stop.
00:28In my telegram channel, I share signals, live trades and real support daily.
00:34And in the VIP group, we break everything down and trade together with full guidance.
00:39Message me directly and I'll show you exactly how we work.
00:42Today's focus. Trading Hill. Two powerful setups. One goal. Watch closely. This session is the real deal.
00:58Let's kick off the session by adding the indicators we need. First is the simple moving average, SMA. Set it to a 50 period. Make it green and bold for clarity.
01:09The second indicator is MACD. We'll change both lines to green and make them bold since we'll rely heavily on them.
01:36The strategy is simple. If the price is below the SMA, the trend is downward. If it crosses from below, we're looking at a bullish trend.
01:59This lets us clearly identify the market direction.
02:08But to avoid false entries, we use the MACD. When the green MSD line touches the zero level, right when price hits the SMA. That's our signal.
02:19For example, price touches the SMA. MACD is at zero. Market reverses. Now let's find this setup live.
02:42On year JPY, price just tested the SMA. But MACD wasn't at zero. So we skip it. We continue scanning the charts for the right setup.
02:59Here, price is approaching the SMA again. But MACD hasn't dropped far enough yet. Still, this chart confirms how well the strategy works.
03:18We've seen multiple clean bounces from the zero zone that led to perfect V-shaped reversals.
03:39And now, the price is nearing the same key area it reacted to before.
03:55Price is approaching the SMA again. MACD is almost at zero. We're getting ready for a call.
04:01Checking payout. Excellent. 81%. Now we wait.
04:16Alright, we're entering the trade now. Going up based on our strategy. Just waiting for the profits to lock in.
04:22And the trade closes in profit. $810 secured. It followed our setup exactly. SMA and MACD worked together perfectly.
04:44Even though the price briefly dipped below the SMA, it failed to hold.
04:48The next candle reversed hard. And we capitalized.
05:03Moving to the next pair. Europound. Price broke above the SMA and held the level.
05:09MACD confirms upward movement.
05:10And now, on EurJPY, we're clearly in a strong uptrend. It's visible right on the chart.
05:32Price has reacted to the SMA multiple times. MACD aligned perfectly with each bounce.
05:37We're in the same situation again now.
05:48Price was ranging for a while. But now, it's testing the SMA again.
05:53MACD is near zero. It's lining up.
05:56Entering my second trade. Double volume this time. $2,000.
06:11We waited long enough for the setup. And it's solid.
06:14And boom. Second trade hits too. Another $3,560 in profit. Just two trades.
06:33And we're up. $2,800. No stress. No guessing. Just a solid strategy.
06:39That's the session. We didn't chase quantity. We focused on quality.
06:45And each trade delivered. Trading should be smart.
06:49And with the tools I use, it is.
06:51End of the training.
06:52End of the training.
06:53Let's go ahead.
06:54Here's five compliant.
06:55It's applying to some advice and spices.
06:56It is!
06:57Go ahead.
06:58Later!
06:59Let's go ahead.
07:00The goal is.
07:01You are.
07:02Go ahead.
07:03And on these plans.
07:04Let's do that.
07:05Mean.
07:06Please read.
07:07Let's go ahead.
07:10Try it.
07:13Yay!
07:14I don't know.
07:15Let's see.
07:16Hey this one, turn.
07:17its reason saiyah mediaaaaaah Saint.