December 11, 2022 - Trading MACD Divergence in the CADJPY

THE PURPOSE OF THIS POST: To prove that MACD Divergence is as relevant a trading edge as it was almost 40 years ago.  That MACD Divergence continues to appear in all markets and in all time frames.

Our trading MACD consistently and profitably is 100% our responsibility.

There were two MACD Divergence trades on the CADJPY 15 minute chart near the end of last week.  The two blue arrows show price action that meets the criteria of the trading edge MACD Divergence.

The first blue arrow on the left, was a very straight forward trade.  It required patient trade management with the up and down price action the market provided.

The red arrow does NOT meet the criteria of the MACD trading strategy.  The MACD was lower but so was price.  The MACD was doing what it was designed to do, follow price.  Even though price moved down very nicely, we must keep the criteria of a trading strategy clear and unchangable.  

The second blue arrow was a more difficult MACD Divergence trade.  The first entry was stopped out.  The second entry quickly moved in the direction of our trade.  How would you have been feeling after being stopped out on the first entry signal?  Would you have taken the second entry signal?

Which time frame does your hectic life allow you to trade?  Which time frame does your hectic life allow you to manage your trades?  Trades are everywhere in all markets and all time frames.  Which is the best time frame for you to trade?  The time frame that fits your normal complicated life.