ilmscore | How to interpret the MACD indicator | CA Rachana Ranade

Predictions from this Video

Total: 3
Correct: 0
Incorrect: 0
Pending: 3
Unrated: 0
Prediction
Topic
Status
A bullish crossover on MACD for Bajaj Finance on October 22nd or 23rd, 2022, could have yielded approximately 20.02% returns within ten days if acted upon, aligning with the typical swing trading timeframe of 2 to 10 working days.
"if I want to give you a simple example on Bajaj finance just have a look at this now you can see here that on 23rd or 22nd of October you can see that there is just an early indication of a possible MACD crossover right so if there is some person who is believing that okay right now markets are trending and ideally this crossover is about to happen maybe a person can wait for a day or two and assume that person enters into the trade at this date on 22nd or 23rd October let's understand what happens so this is the price on 22nd the close price is 3,314 now see what happens to this okay okay okay okay fine pause ideally as we mentioned that we should get out of the stock in the span of three to ten days right so even if that be so and if I am taking from 23rd October for next eight to ten bars see this is ten bars, be more precise 20.02% returns in ten days"
BAJFINANCE.NS
Pending
The MACD indicator is most effective in trending markets, particularly during V-shape recoveries or upward trending markets. It is less effective in sideways or bearish markets.
"typically this works well in trending markets currently urban trending markets as I should the video? answer is NO right now we are into more of sideways a little bit bearish kind of a market when markets are in an up move you remember that v-shape recovery typically that category of swinging market up trending market that is the time when this indicator will work really well"
MACD Indicator Effectiveness
Pending
The MACD indicator is considered a lagging indicator because it reflects changes in price momentum with a delay. For example, a fall in price strength on the 18th day was only reflected in the MACD line on the 29th day.
"see here if you see that the price starts to fall the strength basically, the strength in the in the price starts to fall on day 18 right you can also see from here, here the price increase was was by 16 here it was by 14 and here it is first time by 13 and then by 12 then by 11 so here which day 18th day when the pace of the price the strength in the price started to fall when was this reflected in MACD line this was reflected in MACD line on 29th day right so I hope you have understood this MACD line gave the indicator on 29th today whereas the price gave this on the 18th day itself and that is the only reason why we call this as a lagging indicator"
MACD as a Lagging Indicator
Pending