[00:00] This is Linda an absolute legend of trading. She s A professional trader who has worked&nbsp;&nbsp; for several hedge funds and even&nbsp; started her OWN hedge fund in 2002. &nbsp;
[00:12] And did I mention she made all of her&nbsp; millions trading using ONE specific strategy? &nbsp; Well, I was interested in lil&nbsp; ol Linda and I wanted to find&nbsp;&nbsp;
[00:26] how she became so successful with her trading. So I did what I usually do, and did some digging. &nbsp; I scavenged the internet for days trying to find&nbsp; the exact strategy she uses to make her millions. &nbsp;
[00:39] And lets just say, after hours&nbsp; of digging, I finally found it. &nbsp; Linda uses the MACD as her&nbsp; main component for her trades. &nbsp; Now, I know what you re thinking. Oh here we go again, another macd video. &nbsp;
[00:56] But Linda uses it in a way I ve&nbsp; never seen it used ever before. &nbsp; See, linda changed the default settings of&nbsp; it to some strange numbers, took out the&nbsp;&nbsp; histogram completely, and follows&nbsp; a bizarre ruleset that completely&nbsp;&nbsp;
[01:09] changes the way you will look at the MACD. And I m about to share it all with you right now. &nbsp; Let s get straight into it. So Linda calls this strategy the anti setup. &nbsp; Meaning she s trying to find the reversal point&nbsp; of a trend at a major pullback point and profiting&nbsp;&nbsp;
[01:26] from the massive move after the pullback. Let me paint a broad picture&nbsp;&nbsp; of what we are looing for. Linda would look for a downwards move that is&nbsp;&nbsp; starting to correct like this. Once it starts to&nbsp; correct, it would do a move like this, where price&nbsp;&nbsp;
[01:39] would start heading in the opposite direction.&nbsp; Creating a pullback. Once she found this setup,&nbsp;&nbsp; she would follow her specific ruleset in order to&nbsp; find perfect entries for this specific play. Where&nbsp;&nbsp;
[01:51] she would profit from this beautiful correction. And how she finds this specific move,&nbsp;&nbsp; is purely with the MACD. So, let s add that to our chart. &nbsp; To do this, go to tradingview. If you don t yet&nbsp; have it, ill leave a link in my description. &nbsp;
[02:05] Go to the indicators tab and type in&nbsp; MACD. Click this one, right here. &nbsp; your chart. The settings of it, will&nbsp; be set to these default settings. &nbsp;
[02:17] While doing my spying on Linda, I noticed&nbsp; she completely changed these numbers to&nbsp;&nbsp; Go to the settings of the macd. You are&nbsp; going to change the fast length to 3, the&nbsp;&nbsp;
[02:29] slow length to 10, and the macd length to&nbsp; 16. Uncheck the histogram. You also want&nbsp;&nbsp; to make sure the average type is set to simple. I m also going to change the colors of the lines&nbsp;&nbsp;
[02:43] for simplicity sake. I m going to make the&nbsp; macd line red and the signal line yellow. &nbsp; Our indicator is now setup and it s lookin good. This strategy, will work for all&nbsp;&nbsp;
[02:55] markets and all timeframes. So let s pick a random stock. &nbsp; timeframe for this example. For these examples we will&nbsp;&nbsp;
[03:10] be looking for long trades. Now like I was saying before linda&nbsp;&nbsp; uses the macd in a way Ive never seen used&nbsp; before and she follows a very very specific&nbsp;&nbsp;
[04:13] set of rules to find these setups. The first rule is you need the MACD&nbsp;&nbsp; the MACDS previous high was right here. So in order for us to even consider this trade,&nbsp;&nbsp;
[04:26] the macd line (the red line) must&nbsp; go above this level right here. &nbsp; Just like this. That is step one complete. &nbsp; to move in the direction we are looing to trade. So in this example, we are looking for a long&nbsp;&nbsp;
[04:43] trade. So we want the signal line to be&nbsp; moving upwards. Just like it is here. &nbsp; We want the macd line to revert back to&nbsp; the singal and we want the both to be&nbsp;&nbsp;
[04:56] moving in the opposite direction. Since we are looking for pull back&nbsp;&nbsp; trades. This discrepancy in the lines is&nbsp; showing signs that the market is hesitant&nbsp;&nbsp; or unsure on what it wants to do next. Which&nbsp; is exactly what we are looking for when trying&nbsp;&nbsp;
[05:11] to find pull back trades like this one. So here, when the market is doing this&nbsp;&nbsp; pullback. Both he MACD and signal line cross,&nbsp; and start to head in different directions.&nbsp;&nbsp; Which gives us the signal to enter the trade. Now, while doing my research Linda didn t say&nbsp;&nbsp;
[05:27] how she uses her stop loss and take profits. So I had to do a little of my own testing. &nbsp; What I found is that if you place your&nbsp; stop loss right below low of the move&nbsp;&nbsp; and your take profit at the previous high.&nbsp; It works a great percentage of the time. &nbsp;
[05:42] Here s another example on Microsoft. We see a big downwards move. &nbsp; We then look for the MACD line to make&nbsp; a new high from the previous high. &nbsp; We then look for the signal to slope in&nbsp; the upwards direction. Which it does. &nbsp;
[05:57] Then finally we wait for the MACD line&nbsp; to revert back to the signal line. &nbsp; Once all of this happens, we set our top&nbsp; loss right below the recent low and set&nbsp;&nbsp;
[06:10] our take profit at the recent high.&nbsp; And BOOM another profitable trade. &nbsp; We then look for the MACD line to make a new&nbsp; LOW from the previous low. Which it does. &nbsp;
[06:23] We then look for the signal to be slowing&nbsp; downwards this time. Which it does. &nbsp; Then finally we wait for the macd line to&nbsp; revert back to the signal line. Which it does. &nbsp; We then make sure they both start to head&nbsp; in the opposite direction. Which it does. &nbsp;
[06:38] Once all of this happens. Set your stop&nbsp; loss at the recent high, then set your&nbsp;&nbsp; take profit at the recent low. Then yet&nbsp; again, we get another perfect trade. &nbsp; While doing my testing with this strategy, I will&nbsp; say, it works a great percentage of the time. &nbsp;
[07:29] But with that said, no strategy is absolutely&nbsp; perfect. You will have times where the&nbsp;&nbsp; strategy signals for you to enter and the&nbsp; trade will hit your stop loss.