What Is The HopperDirectX Indicator?
In order to explain the new HopperDirectX indicator, I need to say a few things about the MACD indicator. Once you know how to use the MACD, you’ll never trade without it.
MACD is an indicator for all your charts.
The MACD (Moving Average Convergence Divergence) is a freely available indicator on most charting platforms, and it is one of the most widely used indicators across all the markets. MACD identifies change in market conditions related to momentum and direction when price begins to change.
The “Hopper” is an important point in time.
The Hopper is a term I use to identify when the MACD Line crosses over zero. The Hopper signals the starting point for a trend. When momentum in the trend activity is over, the MACD line fades back to zero, therefore, the Hopper could also be a point in time when the previous trend ends.
The Hopper keeps Hopping.
When the market is active, the Hopper signals the beginning of a wave of activity. But, when the market is not yet ready to move, MACD can get stuck in a rut at the zero level where the Hoppers have no meaning. This can be frustrating when you think you see a Hopper, and the market fails to produce a move in one direction.