Can the trend be predicted in advance? Try the “dual resonance system” of MACD and moving average.

In trading, direction is often more important than speed. Sometimes we don’t misread the market, but enter the market too early and exit too late.

The biggest reason behind this is often that the trend is not clearly seen and the momentum is not grasped well.

So the question is: Is there a method that can not only see the trend clearly, but also judge the “strength” of the market? The answer is: the combination system of MACD and moving average.

This is a logical framework of “trend determines the direction, momentum finds the opportunity”, and it is also a systematic idea that makes transactions more based.

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The moving average pays more attention to the trend: if the price is above the moving average, it means that the market is strengthening; if it is below the moving average, it means that the short sellers are dominant.

MACD pays more attention to kinetic energy: the enlargement of the columnar line represents the increase in kinetic energy, and the contraction represents the weakening of power.

The significance of the combination of the two is to use trend to filter false signals and use momentum to confirm the true trend. When the two signals resonate at the same time, it usually means that the core stage of the market has started.

How to determine signal resonance

In real trading, there is no need to memorize parameters, but to understand the logic behind:

Buy signal: the short-term moving average crosses the long-term moving average, and the price is stable above the moving average; at the same time, MACD appears a golden cross, and the columnar line turns from negative to positive. This suggests that the market direction has strengthened and momentum is driving the upside.

Short selling signal: the short-term moving average crosses the long-term moving average, and the price runs below the moving average; MACD crosses and the columnar line turns from positive to negative.

Indicates that the trend has weakened and the power of shorts has begun to increase.

This is not a “superposition of two indicators”, but a “double confirmation” system signal. Its advantage is to reduce the errors of “false breakthroughs” and “early entry”, allowing you to follow the trend more calmly.

The core of the system is not prediction, but response

Many people study the system and focus on “how to enter the market”; but what is really important is the exit logic and stop loss discipline. In this system, it is recommended that the stop loss level be set below the key trend point – below the intersection of the two moving averages for long orders, and above the key pressure level for short orders. At the same time, the risk of a single transaction is controlled to not exceed 10% of the total account funds.

When making a profit, you can set the risk-reward ratio (for example, 1:2), or leave the market when a reverse signal occurs (moving average dead cross + MACD dead cross). These seemingly mechanical rules are the real part of the “system”.

Let trading change from “feeling” to “system”

The combination of MACD and moving average is not a mysterious strategy. Its value lies in making your judgments more logical and your operations more based. When you enter and exit the market based on unified signals and no longer rely on emotions, intuition or news, trading begins to become replicable, repeatable, and closer to professionalism.

Many people pursue a “high winning rate system”, but truly mature traders care more about:

Can I survive in the rules for a long time?

Can losses be capped and profits expand naturally?

Under the rules, above stability

Any indicator system has lag, and there is no perfect signal. But when you use rules to face uncertainty, you are already ahead of most people. MACD and moving averages are just tools to help us see the rhythm of the trend clearly. What really makes people stable is not the indicators themselves, but respect for the rules and self-discipline in their execution.

As many professional traders agree: “The system is not used to predict the market, but to protect yourself.” You don’t need to be smarter than others, you just need to be more organized. Trends are determined by the market, but stability is determined by you.