What is going on everybody Randall here from Krypton today's episode, we are going to be talking about my favorite indicator, the Mac D in particular. We will be talking about what is the MACD, why? I use the MACD, how I found out about MACD? What settings I use on the MACD and how I trade the MACD, so if you want to go ahead and find out that stuff in definitely stay tuned for today's episode, Music, alright, welcome back guys! It has been a long time since I've seen you there's a good reason for that. My channel got another strike, so couldn't make any content for a week, but I am back and a lot of you have been asking about how exactly I trade, the MACD. The two hour, the one day the week, which different ones how I trade them do a margin trade them. Do I go on leverage? Do I just go back a four, so a whole bunch of questions. I want to answer all those questions for you today. So we'll get into things now. To begin with, this is the MACD down here on the bottom. Alright, now back in the end, beginning of 2018 was when I first really discovered the Magdi, because I was you know before then I had only been an investor. I started trading at that point, the beginning of 2018, and I wanted a simple strategy that I could use. That would tell me when to buy and when to sell, because, generally with trading the time to buy, is when you feel like you should you want to sell and the time the cell is when you feel like you should buy, I mean we all know that The FOMO underfoot, so I was just messing around with different indicators.
Looking at Bollinger Bands moving averages all these different things and I came across the MACD and this one really stuck because I was taking a look at things and I was like damn. If I just traded on that alone, I would be doing pretty well, as a matter of fact, had someone back tested and it looked like you could get 69 x games over two years, just using the MACD alone. Now, what is that? What exactly is the MACD? Well, it's these two lines and this histogram down here now these two lines: there's a blue line and an orange line. I just leave it on default settings so how you find it as you go up to indicators and trading view. You click on indicators. You type in MACD and the first one that comes up that's, the one you're going to use now I'm, like I don't, select it cuz. I already have it here, but if you take a look at it, we have a blue line and an orange line. Now these are the default settings. 1226, close nine. That tells me that the MACD line, which is this blue line, is the difference between the twelve day and the 26th day MACD or whichever period you're using this is the daily chart. So the difference between 212 period and 26 period moving averages on the clothes and then this orange line the signal line that's a nine day, smoothing of the MACD line.
Now what does this actually give us? It gives us these crosses and that's really what I'm interested in in the MACD is. These crosses. These crosses tell me exactly when to buy or sell Bitcoin and they're what I've been trading on since the beginning of 2018, somewhere around the it was around this point. Around March of 2018 was when I started trading on them, and while it has done for me a lot better than just holding Bitcoin since then it hasn't gotten me the 69 X Games that I was hoping for. So obviously, do your own research, the thing about it. I'Ll say this about everything is to be consistent, so you don't want to go changing strategies you don't, want to go to first off. This is in financial place. Okay. This is just my experience. I'M sharing. My experience with you do your own research, at least not financial advice trading is risky, blah blah blah blah blah, but you want to be consistent, there's this book, the way of the turtle the whole entire book you don't, have to read it because basically it comes Down to, if you want to be a good trader, find a profitable strategy stick to it regard regardless, okay, so what are we doing with this? Well there's, a crosswind, the blue tucks under the orange and there's another cross. For me, when the orange tucks under the blue, those are the two crosses, so those are the times that we're going to buy.
So, basically, when the blue line is on top when the MACD line is on top want to be in Bitcoin when the orange line is on top want to be in a stable coin now some of you asked you know: can you margin trade this and yes, One of my friends did do this and he was doing it pretty successfully. I, however, don't like to do that, because I feel like the Bitcoin markets are traded so thinly as it is, and with Morgan margin, trading, it's very, very risky. Unless you know specifically what you're doing I'll share with you later, how you can learn margin trading better? If you did want to do that, however, I don't recommend it because with margin trading, you can get liquidated and lose everything, whereas with just trade, basically hedging back and forth between Bitcoin and stable coins yeah, you might lose a little bit because maybe you were in Bitcoin, when you shouldn't have been but you're not going to lose everything so that's what I that's, what I've been doing? I just go back and forth between Bitcoin a stable coin. I don't mess margin trading because it's frickin risky dangerous people who tell you to do it unless you're a professional trader unless you're willing to lose everything. It is stupid, so let's get into some other stuff. So basically, just want to be in Bitcoin when the blue lines above and it's stable home, when the orange line is above now.
Why well, particularly if we were, if we were looking at this chart here, all right when there's this cross right here? Okay, this says: go from Bitcoin to stable coin and we take a look at the price I'm. Just gon na make this a bit smaller, so it's easier to see the price. But if we go right up there, the price – I would say somewhere around 18000 now, if we ride that in a stable coin, then it's right here and at that point price is somewhere around 16000 okay. So, basically, you sold Bitcoin at 18000 you're buying again at 16000. Now this is a little one. This will happen every once in a while, where you just have a little blip where it's not really gain or loss, or maybe you gain a little bit or lose a little bit, but then again, we're back in stable coin, until the price hits here, which is 11000, so basically you sold at 18000 you're buying it at 11000. But again this is another little blip, so that sometimes happens. You may buy one day to sell again a couple days later and then really it's not until down here this cross right here, where we would actually be buying back in and staying in for a while and right there, the price is around 7000. So what happened? There we sold of 18000, we bought in at 7000, now, basically you've more than doubled. Your position you've almost tripled your position in Bitcoin.
So if you had one Bitcoin in the beginning, you would have three Bitcoin now by doing this and then what you do. Is you stay in Bitcoin until it crosses again to the bottom, which is right up here at 11000? So basically you bought in with 7000. So now you have three Bitcoin that were let's just say: okay, we'll just do the math on it. So you had 18 one Bitcoin at 18000. You sold it, you bought in again at 7000 or so. Okay, so let's just say: you have three Bitcoin now at 7000 will say: 21000. Well guess what goes three Bitcoin when you're selling them again they're, not worth 21000, because now they're at eleven five, okay, so there's three Bitcoin are worth thirty, three thousand or thirty! Four thousand five hundred at this point so that's how you gain money using the MACD and basically the reason I like the daily MACD is because I don't have to trade. That often, if we look at this, you trade once on December 19, once on January 5th, once on January, 9th once on January 28th, once on January 30th and then February 10th and March 7. So basically you're only trading a few times a month. But to be able to make this much money from doing that is pretty incredible, so let's get into a little bit more behind the MACD. The other thing that I should mention here, this histogram, you can look at it because the histogram tells you the different or the distance between the orange line and the blue line so that's all.
It is an illustration of the distance between orange line and the blue line. You can look at it. I don't really look at it that much other than just finding when there's a red line or a green line, starting because that would indicate that you know I should have bought or sold at pickle. So moving average is just a definition, real fast, so basically it's a trend following momentum indicator that shows a relationship between two moving averages of security price. The MACD is calculated by subtracting a 26 period, EMA from the 12 period, EMA and then a nine day. Ema of the MACD is called a signal line plotted on top of the MACD line, which can function as a trigger for buy and sell signals. Okay, so that's the MACD. Now one thing that I do, if you take a look at this chart here, this chart is a little bit different than the previous chart. Okay, not only the colors, but you can see it's. It seems like there's a lot more reds and then a lot more greens and then a lot more reds and then a lot more greens versus this chart, which is a typical chart, will receive red red, green red, blue, green red, red, green and basically, what this Is this is just a different type of candles use? Are the high kanashii candles I like to look at these because they tell us a little bit more about the trend, how you find them.
You go up to this candle thing up in the top and instead of using the regular candles that you would, you would just select hike in a sheet. Okay, and just to give you a definition that sometimes it means average bar. It can be used in conjunction with candlestick charts to spot market trends and predict future prices, it's useful for making candlestick charts more readable and trends easier to analyze. Alright. So I just like the way they look a little bit better and one thing that I will mention if we just take a look, we zoom in here at the end, okay, the these two charts will actually be different. So if we take a look we're get in there, eventually, somehow there we are okay. If we take a look at these standard candles, we already have a MACD cross a day ago, whereas the high kanashii candles haven't yet crossed. So I mean this is kind of a judgement call do what you do but be consistent. You want to find a winning strategy and be consistent with it. So I consistently use a high Ganesha candle, so I consistently do that. Okay, I don't switch back and forth. Now some other things I like to do with the MACD, because this is the daily MACD. This is what I trade, the MACD on so basically when there's a cross, as will probably be happening in a day or so with the high kanashii candles.
I have to this is being recorded recorded before it's aired because I'm still ticked off YouTube for the time being put this will be on when I come back. Basically when that crosses, then I will trade and another note I don't trade. The moment it crosses. I just checked once a day, so basically every day, I'll check sometime during the day and if there's a cross, then I trade. If there's, not, I don't trade, I don't go checking all the time. This is just. I checked once a day. Okay, if there's a cross, I trade, if there's not do not, so all the things I find useful with the MACD, we have some other time periods. We can look at the MACD, so another one that is one of my favorites is the one week MACD now. Why is this my favorite because of a few thing so I'm just going to turn off the histogram, because this can get kind of annoying to look at it gets in the way of just looking to MACD line. So one of the things I found out about the weekly MACD is that when we have a tangent to the line as we've seen there and also as we see right here, tangent to the line, that generally indicates a pretty significant change in momentum of the market. Now, if we take a look here, this was pretty close to the top of the market. Okay, and I knew at that point that Bitcoin price was going down as it did now again.
Here we have another tangent to the line indicating that Bitcoin price is likely going up, so those are two things I'd like to look at with the weekly MACD, but also we have another weekly MACD cross here now these crosses are a bit lagging because, instead of Being on a day they're on a week, so here, if, if you would trade these crosses, you would have bought in somewhere between 10500 and between 93 and 10 5, which you say somewhere around 10000 you would have bought in and where you would have sold. Excuse me and you'll be buying back in Bitcoin right around 8300, so it would have worked, but not as good as using the daily MACD and one thing that I found. I have someone doing some back testing for me: he's, actually creating a pretty awesome back testing bot, so hopefully, in the next few months, we'll be able to debut that on the channel. So you guys can check that out, but one of the things I found or that he found that was really good is the best time frame for the MACD is the two hour Mac. Now this is taking a look at the two arrow MACD. You can see. There'S a lot more crosses, sometimes you have to trade a couple times in a day just because you know we're looking at the two hours, but with a bot. This could be a lot better and I will mention the gains are much higher.
You have to trade more often, but maybe it's worthwhile, for some of you to do that. The only thing is I got ta say you want to be consistent. You have to be consistent across this thing. You can't go trading the 2 hour every once a while and then the daily and then the weekly and then the 2 hour. You want to be consistent because that's how you actually make profits as a trader now. The other MACD I want to talk about is the monthly MACD. Some people take a look at this thing. I think that the monthly MACD is such a lagging indicator, it's almost useless. Now, right now we see the monthly MACD is saying: go into a stable coin. From Bitcoin, but if we take a look at the last one time, it said to go from stable from Bitcoin to a stable coin, then back. We would have one cross right here where the average of that is like 7000, and then we have another one right here. The average of it is 8000, so we would have actually lost money trading on the monthly MACD. So while we can take a look at that, I honestly don't really ever look at the monthly MACD so in. In summary, in summary, what do I do when trading the MACD? I trade the MACD looking at hike and ashy candles on the one day the default settings for the MACD 1226 close 9.
Again, you find it by going to indicators up here in the top left and then clicking on MACD, and you can change the settings of these I've changed the settings just a little bit to optimize it for how I want to see it visually appealing. But this is pretty much what it looks like when the blue is on top. You want to be on Bitcoin when the orange is on top. You want be a stable coin. I don't the margin trade because that's risky. Unless you really know what you're doing you can lose a lot, if not all, of your money, and even though some people, the most popular people on YouTube right now for cryptocurrency, are touting margin trading that's, because they're making a quarter million dollars per month off of Those affiliate links. Okay, if you don't believe me, I'm gon na have a video coming up, showing you that later so stay tuned for that that's. The reason they're touting it not because it's the safe thing to do with your money. However, there are some of you who, regardless of what I say, will want some margin trade, so there's. One thing that I would recommend: if you wanted to do that again: margin trading is very risky, so one of the top traders on trading view Jacob can field of signal profits, he retired from trading in his late 20s. He actually walks the walk and talks to talk. Okay, when I say he retired from trading.
It means he traded until he had enough money to where he didn't have to work anymore. Well, he created a margin trading course. So all you need to do is down in the comments. I will post a link in the comments, not in the description in the comments that will post a link. You click on that link and then go up top here to trading, and then all you want to do is click on margin trading signals and he actually has a margin trading course. Where he'll teach you how to margin trade and then if you want we'll, give margin trading signals, and you can use that because he's going to teach you how to margin trade safely, that's a very, very important thing. All these people, touting by bit on YouTube, are not traders, okay, their former bit connect chills and now they're by bit chills. Okay, you want to be taking your advice on trading from people who recommended bit connect. Well, sunny decree did he was one of the top people selling bit connect okay. Now he is touting by bit along with a lot of other people saying by bit, because they're making up to a quarter million dollars per month, exploiting you. So I do not recommend market trading, but if you have to – and some of you want to – and you want a margin trade – you can go ahead and do it and if you want to learn how to do it safely and securely definitely check out this course By Jacob Canfield I'll leave a link down in the comments, so that is all for the MACD.
I just want to make that video for you guys, because you've been asking a lot about it. I had to remove all of my old videos because I was getting strikes on stuff from like a year ago, so I just remove them. I'Ll, be reposting the important content, but really no links in the description, no yada, yada yada. So all of that stuff. Thank you guys for watching if you did enjoy this, do me a favor and give it a thumbs up subscribe. If you haven't already, and then I will catch, you guys later make sure to check out the monarch wallet also, they are one of my sponsors, because I firmly believe that they are one of the best, while it's out there, even one of the best cold storage. Well, if you disconnect your phone from Wi, Fi and cellular so check out the monarch wallet, you can go to monarch wallet, calm thanks for watching I'll catch.