A complete guide on "How to use MACD"
🧵
The thread will teach you.
🌟Building blocks of MACD
🌟How to interpret MACD signal
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@bhatiamanu @kuttrapali26 @KommawarSwapnil

🟢The black dot is calculated by taking difference between 12ema and 26ema.
🟢9ema is applied on the blue line which results in the creation of an orange line which is also called the signal line
🟢Histogram is plotted by taking the difference between the blue and orange line
Using MACD line (blue color) for Trend identification
🟢If MACD line is above 0 - Primary trend +ve
🟢If MACD line is below 0 - Primary trend -ve
Identification of Trend-reversal
🟢when MACD line cross below zero line primary trend changes to -ve
🟢when MACD line cross above zero line primary trend changes to +ve
Identifying the starting point of corrections
🟢Histogram turning light red is starting of +ve correction (some time fall continues)
🟢Histogram turning light green is starting of -ve correction
🟢sometimes light red/green color will also indicate starting of consolidation
🟢When Histogram changes from light red into dark green it confirms +ve correction
🟢When Histogram changes from light green into dark red it confirms -ve correction
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MASTER THREAD on Short Strangles.

Curated the best tweets from the best traders who are exceptional at managing strangles.

• Positional Strangles
• Intraday Strangles
• Position Sizing
• How to do Adjustments
• Plenty of Examples
• When to avoid
• Exit Criteria

How to sell Strangles in weekly expiry as explained by boss himself. @Mitesh_Engr

• When to sell
• How to do Adjustments
• Exit


Beautiful explanation on positional option selling by @Mitesh_Engr
Sir on how to sell low premium strangles yourself without paying anyone. This is a free mini course in


1st Live example of managing a strangle by Mitesh Sir. @Mitesh_Engr

• Sold Strangles 20% cap used
• Added 20% cap more when in profit
• Booked profitable leg and rolled up
• Kept rolling up profitable leg
• Booked loss in calls
• Sold only


2nd example by @Mitesh_Engr Sir on converting a directional trade into strangles. Option Sellers can use this for consistent profit.

• Identified a reversal and sold puts

• Puts decayed a lot

• When achieved 2% profit through puts then sold

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