By subtracting the 26-day exponential moving average (EMA) of. Conditions: A 5-minute Japanese candlestick chart. As with the Stochastic indicator, I want to specify that I am not covering the functionality of this indicator for you to using macd immediately start using MACD. To explore. MACD helps traders discover new trends and identify the end of the current trends. In this particular scalping system, you will use the MACD on different settings. It’s important to keep in mind that while MACD is popular, it isn’t always perfect. This is where using the MACD trading strategy as an overbought/oversold indicator gets tricky. Using MACD Stock Charts. This is fine for catching the major trends, but like all trend following indicators, it will not work well in choppier markets. There are 2 MACD signals in particular that we will explore in this article and explain step by step how to use the MACD to find trades: 1) The MACD Line cross 0. MACD is prone to signal line crossovers that don’t reflect a coming reversal The MACD indicator is the most popular tool in technical analysis because it gives traders the ability to quickly and easily identify the short-term trend di.