Price Action & Income presents... 

The Ultimate MACD 

Entry Strategy 
For Any Market Condition 

By Senior Trader & Market Analyst, Richard Krugel. 

 
  

Thanks for downloading my eBook!

My name is Richard Krugel, and I’m the Senior Trader and Market Analyst at Price Action 
& Income. 

Before we dive in, I want to give you a brief backstory about the concepts you’re going 
to see in this eBook. 

Firstly, I am a real trader that trades for a living. Like so many traders out there, I have 
had a very difficult path to becoming consistently profitable. 

After spending thousands of dollars on gimmicks and so called “expert advisers,” trying 
to make an honest living from trading, I was at wit’s end. 

So I started developing my own strategy.  

I combined a few powerful analytical techniques that compliment each other very well, 
and after a few years of rigorous back testing and experimenting, it resulted in a 
low-risk, high-yield strategy that has performed very well for me over the years. 

I’ve always wondered how much money, time, and effort I could have saved if I had my 
strategy sooner, however, which is why I genuinely market this strategy:  

To help fellow traders understand price action for what it is, and to trade it with 
discipline. 

*Please Note​: My trading methodology is aimed at achieving one specific goal: 

Finding the end of corrections and entering low risk trades when the trend resumes again. 

 
  

-R
​ ichard Krugel
 

Introduction: How to Use the MACD Indicator 

Traders rely heavily on indicators to assist them with their technical analysis, and the 
variables used to calculate an indicator’s values are mostly based on the ​open, high, low, 
close, ​and​ volume ​of a​ candle/bar​. 

All these variables have led to the creation of ​thousands​ of indicators, but they all fall 
into ​4 types or categories​ which aim to achieve one particular goal: 

1. Trend Indicators 
2. Momentum Indicators 
3. Volatility Indicators 
4. Volume Indicators 

Many traders assume the more indicators they have, the better their results will be… 

 
  

This is not the case!  

Using too many indicators - or not knowing which indicators to use in combination with  

eachother - can cause sensory overload, confusion and false signals. 

In this eBook, I will show you how to use only ONE indicator combined with other 
techniques to derive a powerful trading strategy.  

The indicator we will be looking at is called the M

​ oving Average 
Convergence/Divergence​, or M
​ ACD​ for short. 

Before You Get Started…

 
Please remember that this eBook will only scratch the surface of what you’ll need to 
know to truly ​master​ market structure. 
 
Yes​, it is extremely important to have a solid entry strategy, but you’ll still need to work 
hard to develop the rest of your strategy and the rest of your knowledge. 
 
If you want the shortcuts to ​really​ master this stuff, I put my life’s work into a complete 
curriculum that will give you every tool and resource you need to become a successful 
trader. 

So if you want to be ​fully​ immersed in my trading strategies, you can grab my training 
videos for just a few bucks.​ C
​ lick here to get started. 
 
  

 
 
Now, on to the MACD… 

The MACD Indicator

This indicator consists of 3 main parts: 

 

1. The standard MACD (black Line) is calculated using the closing prices of a 
12-day exponential moving average (​EMA​) minus a 26-day EMA. 

2. The red signal line is a 9-day E

​ MA​ plotted next to the MACD line, and it signals 
turns in the indicator. 

 
  

 
 

3. The third part is called the ​MACD-Histogram​, which shows the difference 
between the black MACD line and the red signal line, and is plotted in blue above 
or below a zero line. 

 
Look what happens when the MACD line and red signal line cross:  

When the MACD is above the signal line, the MACD-Histogram plots above the zero line 
(and vice versa).  
 
You can trade this in ​any​ type of market. 
 
 
This is a short explanation of the parts that make up this indicator, but all you need to 
know in this eBook is this:  
 
  

 
 
I only look at the MACD-Histogram, and I only look for one thing: a change in a price’s 
momentum. 
 
Sounds easy enough, right?  
 
Let’s dive in. 
 
 
 
Momentum Divergence

 
 
Momentum of price movement can be defined as the force at which price is moving in 
any particular direction.  

 
  

 
 
The start of trends normally display an increase in momentum but as a trend matures or 
come to an end the momentum at which price was moving tend to dry up before a 
change in direction occurs. 
 
The chart above shows a downward trending market.  
 
By using our MACD-Histogram, we can see that when price started to accelerate 
downwards, the blue histograms grew larger and larger (below the zero line). 
 
Right after the middle mark on the chart, however, price kept moving downwards BUT 
the blue histograms showed a decrease in momentum, and became shorter and shorter 
(closer to the zero line). 
 
The momentum displayed by the MACD-Histogram started to dry up even as price 
continued its way downwards.  
 
This is known as ​momentum divergence​ (or price divergence). 
 
Simply stated, ​price and momentum are moving in opposite directions​. 
 

 
  

Now, before we get too excited...

There is one ​BIG​ problem with momentum divergence indicators...

They can show divergence for a long period of time in a strong trending market,
rendering this indicator ​almost useless​ when trying to determine the ends of very strong
trends.

This is why I never use the MACD-Histogram on its own, but in combination with other
tools and techniques to make better trading decisions.

(Don’t forget: All the tools you need are already in most trading platforms, collecting
dust!)

 
  

When used as part of my larger strategy, the MACD-Histogram becomes an extremely

important tool that I never trade without.

Using the MACD-Histogram as Part of a Strategy

As noted in the beginning of this eBook, my trading methodology aims to find the end of 
corrections within a trend so that I only enter trades that trade with the main trend - ​not 
against it​.  

To do this effectively, I developed my own strategy that follows a systematic process in 
order to achieve my goal. 

My strategy processes include: 

1. Determining trend and market structure on a larger time frame. 

2. Finding areas where corrections are most likely to occur. 
3. Switching to a lower time frame once a correction occurs and identifying the 
type of correction. 
4. Using market geometry and Fibonacci ratios to define the characteristics of 
the correction. 
5. Determine where the correction is most likely to end. 
6. Switching to an entry time frame once price reaches the area I identified the 
correction could end at. 
7. Wait for a set of entry conditions to appear before I take a trade. 

 
  

 
 

Next, we will look at a real example of a trade setup I identified ahead of time, following 
the processes above.  

My ​MACD-Histogram​ forms part of my entry conditions and is one of the last things I 
look at before ​entering​ a trade (during process 7).
 

Processes 1 and 2

The chart above is that of A

​ UD/USD​ on a 4 hour time frame.  
 
This is the highest time frame I use, and I use it during process 1 to determine trend (or 
change of trend). 
 
It clearly shows how price changed trend early December 2018 when price broke 
through the blue trend line and previous market structure (red line).

 
  

 
Process 2 requires that I find areas where price (within a trend) is most likely to give me 
some sort of correction.  
 
Using a ​Fibonacci extension tool​ on previous price swings I knew that one of the Fib 
extension levels would act as temporary resistance, and offer me a correction of some 
sort.

 
  

Processes 3, 4, and 5 

 
 
The next 3 processes involve looking at price action and market structure a bit closer to 
determine which type of correction I’m dealing with, after which I use additional 
techniques such as market geometry and Fib ratios to decipher the correction’s 
characteristics. 
 
The serious study of different corrections has helped me identify this correction as a 
Symmetrical Triangle correction​.  
 
Knowing the identifiable characteristics of corrections helps me determine - ​ahead of 
time​ - where the correction is most likely to end. 
 

 
  

Processes 6 and 7

This is where the MACD-Histogram proves its worth.  

Price entered the zone in which I was looking for the end of a correction, and it did so 
twice​. 

The first time was on increased momentum (red line on histogram), which signaled no 
momentum divergence. 

The second time price entered my zone was on momentum divergence (green line), and 
after I spotted another of my entry conditions in the form of a reversal bar (red oval), I 
knew that it was time to place an order. 

 
  

Trade Outcome

The trade played out ​beautifully​, and the MACD Histogram allowed me to ​pinpoint​ the 
end of this correction ahead of time - ​resulting in a m
​ assive ​triple ROI! 
 
This gave me more than enough time to prepare for the trade and nail the absolute low 
of the correction. 
 
Using a smaller time frame during those last steps, together with my MACD-Histogram, 
also made it possible to reduce my risk and stack the odds heavily in my favor. 
 

 
  

Conclusion 
 
What you’ve seen in this eBook is just one example of how I use the MACD to find 
setups that result in high probability trades with ​very little​ risk.  
 
Remember:​ I use the MACD-Histogram to show me one thing only: ​a change in a price’s 
momentum. 
 
My entry conditions and the use of the M
​ ACD-Histogram​ make up an important part of 
my overall strategy, though, and most importantly… 
 
It keeps me out of setups with a low chance of success - ELIMINATING most losses 
before they happen! 
 
In the ​highly​ competitive world of trading, stacking the odds in your favor requires a 
strategy that relies on a systematic approach - in which each part has an important role.  
 
This allows you to break down price action into manageable, “bite-sized”chunks to find 
entries with very low risk (and ​massive​ profit potential). 
 
If you’d like to see more of my strategies, please feel free to ​check out the E
​ xponential 
Profits System​ on my website​. 
 
 
 
 
 
  

 
 
I packed a ton of detail into a training series that illustrates the whole process - f​ rom 
start to finish. 
 
Oh, and before I forget… There’s a bonus video lesson at the end of this eBook to get 
you started! 
 
You’ll find it below, and it’s 100% free just for grabbing T
​ he Ultimate MACD Entry 
Strategy​ today. 
 
Thanks for reading along, now go put your MACD Histogram to work! 

Looking Ahead: More of My Methodology

If you’d like to see my ​complete​ trading strategy – plus my own ​exact​ entry
criteria for finding the highest profitability trades that most traders completely
miss – I ​highly​ recommend my complete course.

It’s the next step in learning how to take control of your trades -​ including my
bulletproof exit strategy​. ​Click here to get started now.

 
  

With Exponential Profits, you’ll quickly discover:

 
● How to spot triple-digit ROI trades, including REAL examples
of these exact types of trades – and how to manage those
positions until you take profit

 
● How to apply a specific set of Market Geometry tools to find
these entries – including the most overlooked tool in your
trading platform

 
● How to see through the “noise” and identify natural market
movement

 
● How to turn your trades into a profitable revenue stream
without​ living in front of your charts

Click Here to Get Started 

 
  

 
 
 

 
 
 
See a Free Video Version of this MACD Strategy: 

 
Would you rather watch a video of my MACD strategy? C
​ lick Here​. 

 
  

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