There is a jungle of technical indicators to add to you favorite instrument, and that you want to update along the price changes.
The one indicator that continously stands out of them all, is the MACD indicator. The MACD gives you an exact feel of a trend - stronger or weaker. There are several ways to analyse its patterns, but primarly you will be looking for a higher bar for stronger prices or a lower bar for lower prices.
Yes, MACD is a rules as a lagging indicator, but by plotting the unknown next potential price (higher of lower than our last real price), you suddenly have a super leading indicator.
See the example below.
This first pic shows you the price of Silver after last real closing price at 27.50.
The last 5 market-closes sees a lower MACD meaning that the gap between the 26 and the 12 period moving average is getting larger and that prices are likely to continue lower until we see the oposite.

The next pic shows you what silver will look like if tomorrows price closes at 28.0. Thereby the MACD gives you a higher bar, which is a positive for higher silver prices to come (becuase it increases the odds of again seeing a higher bar the day after tomorrow).

The next pic shows you a hypotetical weaker close at 27.3. This means a continuously lower MACD and further weakness for the price at the next close. Try it out!

2021-05-23 16:29 | 0 Comments | MACD indicator