The MACD indicator has solved a lot of problems for me when I was a beginner trader.
For the last eight to nine years, I have been using the MACD indicator to not only take better quality trades, which increases the win rate, but it has also helped me avoid taking bad trades.
Avoiding bad setups is the most important thing you can do as a beginner trader.

TR Score: https://tradingrush.net/trscore/

So, I’m going to list the five best MACD use cases that I don’t see many people use.
I mean, one of the popular ways to use MACD is its crossover to buy and sell.
But an even better thing about the MACD is the histogram part.
For example, number five.
Let’s start with one of the best use cases.
You know when you see a strong trend going on, but you are not sure if entering right now will be a good move or not.
I mean, the price has already made a good move in one direction.
How do you know whether the trend is over or not?
What’s the probability of the price reversing as soon as you take the trade?
Well, the MACD histogram can help here.
You see, the histogram is actually showing the momentum.
In other words, it’s showing whether a price move is getting tired or not.
If the price is trending up, and the MACD histogram bars are also moving up, then the trend is not tired.
It has strength.
If it has strength, then it can continue even higher.
But if the price is trending up, but the MACD’s histogram is moving down, then it means the uptrend is getting tired.
If it’s getting tired or losing momentum, then there is a relatively higher probability of price moving down.
In other words, it’s not a good idea to buy at this high point.
You can do a similar thing in a downtrend.
Number four.
If you are like me and like to enter at the end of a pullback instead of the top, then you will like this one.
Let’s say there is an uptrend going on, and the price starts giving a pullback.
Now, if you have been trading even for a little while, you probably know that if the pullback is stronger, then you shouldn’t buy just yet.
I mean, if the price is coming down with strong pressure, why would you buy when it’s going down fast?
So, instead, we can look at the MACD histogram.
If the price gives a pullback, and the MACD histogram is also moving down, then we don’t buy just yet.
The pullback still has downward pressure.
The sellers are stronger.
But if the histogram starts moving up, then it’s a sign that sellers are getting weaker and the buyers are coming back.
Now, with lower selling pressure, the price has a relatively higher probability of moving up.
Number three.
Just like how we see big green candles as big buying pressure, and big red candles as big selling pressure, we can also see big histogram bars as stronger pressure, and small histogram bars as weaker pressure.
Number two.
This is one of my favorite ones.
So, what I do is, when the price comes near a support or resistance, I don’t know if the support or resistance will work or not.
I mean, many times support and resistance are reversal trades.
I don’t know if a price area is enough to completely reverse the trend.
So, I look at the MACD histogram.
If the price is coming down towards a support area in a downtrend, I will many times not immediately buy.
Instead, I will wait for the MACD to show upward-moving histogram bars.
This way, I know the downward move is getting weaker.
And since the momentum was lost at a support, many other traders are probably noticing the support area as well.
That’s much better than buying at support when the downward momentum is clearly stronger on the MACD histogram.
Number one.
This is for the swings of the trending market.
If you trade trends, this will help you.
You know how the trend moves like a swing, up, down, up, down?
Well, when that is happening, the MACD histogram also does up, down, up, down movement.
Since MACD uses a limited number of previous candles to calculate its values, you won’t see a continuously moving upward histogram.
But you will see something interesting.
If the price makes a higher swing high in a trend, but the MACD histogram doesn’t make a higher swing high, then the swing high was probably weaker than the previous upward swing.
A sign of a weaker upward swing move can be seen as the trend losing its strength.
Overall, MACD is one of the best indicators I have used in my eight to nine years of trading journey.
It also got one of the highest win rates when I tested its strategy one hundred times on the Trading Rush channel.
You can use the Official TR Score on the Trading Rush website to see which strategy got the highest win rate and which ones got lower.
The link is in the description.
Thanks for watching.