Hull Moving Averages with the MACD | Trading with Technical Indicators

About this Video

• Video Title: Hull Moving Averages with the MACD | Trading with Technical Indicators
• Channel: Trader Talks: Schwab Coaching Webcasts
• Speakers: James Boyd, Lee Bohl (mentioned in chat), Grace Wy Life (mentioned in chat), LJ Mark (mentioned in chat), Robert Oda (mentioned in chat), and others (mentioned in chat)
• Duration: 00:48:36

Introduction

This video provides an educational overview of using technical indicators, specifically Hull Moving Averages and the MACD, for trading. The presenter, James Boyd, uses examples and illustrative charts to explain divergences (bullish and bearish), entry and exit strategies using moving averages, and risk management techniques within a paper money trading environment. The video emphasizes that the information is for general knowledge and not personalized investment advice.

Key Takeaways

• Divergences: Bullish divergences occur when prices make a lower low, but the MACD makes a higher low, indicating potential market consolidation or pullback. Bearish divergences are the opposite, where prices make a higher high, but the MACD makes a lower high, suggesting weakening upward momentum.
• Hull Moving Averages: The video demonstrates using 10 and 20-period Hull Moving Averages to identify potential entries (when both are green) and exits (when the shorter-term average turns red). The presenter explains a "one-two-three" method for entry based on the moving average's behavior.
• Bull Flag Pattern Identification: The presenter illustrates how a short-term pullback where the shorter-term moving average dips red, but the longer-term average remains green, can signal a potential bull flag pattern.
• Risk Management: The video stresses the importance of position sizing and stop-loss orders. An example is provided using 5% of the available capital and calculating stop-loss levels based on percentage risk from the entry price.
• Finding Trade Setups: The video describes using Thinkorswim's market watch and customizable columns to screen for stocks meeting specific criteria (e.g., both Hull Moving Averages green or short-term moving average down, but long-term average still green).