Complex trading system#3(macd divergence)

Complex trading system#3(macd divergence)Complex trading system #3 (MACD Divergence)

Submitted by Edward Revy on April 19, 2007 - 16:55.

Currency: EUR/USD (preferred) or any other.

Time frame: 30 min.

Indicators: MACD (5, 26, 1) – draw 0 line,

Full Stochastic (14, 3, 3)

Trading rules: watch for divergence between the price on the chart and MACD or between price on the chart and Stochastic.

Once divergence spotted, wait for EMA 3 and SMA 13 to cross and enter the trade in the direction of EMA 3.

Set stop loss at 26 pips.

Take half of the profit at 20 pips; let the rest to run further with trailing stop in place.

Divergence on Stochastic can be found the same way as on MACD. The reason for using both MACD and Stochastic is that one of the indicators can show divergence while the other will not at given period of time.

Forex trading strategy#7(simple macd crossover)

Forex trading strategy#7(simple macd crossover)Forex trading strategy #7 (Simple MACD crossover)

Submitted by Edward Revy on February 28, 2007 - 14:40.

Trading with MACD indicator is widely used by Forex traders.

Let's take a glance at the very basis of currencies trading with MACD indicator.

We will need only MACD indicator with standard settings: 12, 26, 9.

Any time frame as well as any currency pair can be used.

Entry rules: When the MACD lines’ crossover appears – enter (or wait for the price bar to close and then enter).

Submitted by Edward Revy on June 2, 2007 - 03:19.

Yes, your description is correct.

With standard settings (12, 26, 9):

MACD's first (blue) line shows the difference between the two moving averages: 26 and 12-day EMA. The second (grey) line - is simply a 9 EMA of the MACD and it works as a signal line providing signals for short/long entries. Same 9 EMA is used to draw a histogram.

Wma macd scalping strategy

Wma macd scalping strategyWMA + MACD Scalping Strategy

Hello traders, my name is Trantula, Im running my own thread on Forex Factory website and I will help you in achieving better results with reviewing and analyzing systems for FX trading.

WMA + MACD SCALPING STRATEGY

• 10 period WMA (Weighted Moving Average)

• 20 period SMA (Simple Moving Average)

• Slow Stochastic (10, 6, 6 (exponential))

• RSI (28)

MACD (24/52/18 (exponential))

RULES . Only take trades between 8AM-12PM EST and/or 2AM-4AM EST.

BUY when the 10 WMA crosses up past the 20 SMA and the Stochastic is signaling up (fast line above the slow line), RSI > 50 and the MACD histogram >0 and MACD averages crossed up.

SELL when the 10 WMA crosses down past the 20 SMA and the Stochastic is signaling down (fast line below slow line), RSI<50 and the MACD histogram <0 and MACD averages crossed down.

STOP LOSS . Discretionary

Conclusion . Good scalping system based on MAs and MACD. It exploits strengths on 5m charts and its based on WMA which is a good thing for scalping system like this.

Rating . 3.75/5.00

BUY example:

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SELL example:

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Macd scalping1min trading system-forex strategies-forex resources-forex trading-free forex t

Macd scalping1min trading system-forex strategies-forex resources-forex trading-free forex t49# MACD Scalping 1 min Trading System

Long Entry

All MACD>0 and EMA21>EMA 34 and EMA 144. Confirmed by Flat W MACD with Green Bars. Aggressive (MACD 13, 21,1)>0 ,(MACD 34, 144, 1)>0 and EMA21> EMA 34 and EMA 144. Confirmed by Flat W MACD with green bars.

Short Entry

All MACD <0 and EMA21<EMA 34 and EMA 144. Confirmed by Flat W MACD with Red Bars. Aggressive (MACD 13, 21,1)<0 ,(MACD 34, 144, 1)<0 and EMA21<EMA 34 and EMA 144. Confirmed by Flat W MACD with red bars.

Macd trading system

Macd trading systemMACD Trading System

COMPONENTS

MACD Indicator (no histogram)

MACD setting: 12-26-9

MACD INDICATOR

The MACD (Moving Average Convergence Divergence) indicator was created by Gerald Appel back in the 1970's. Some traders consider it to be an effective momentum indicator, constructed using the difference between two moving averages which are trend following indicators.

Therefore, enabling a trader to have both trend following and momentum characteristics in one indicator. It consists of two lines and sometimes includes a histogram as well.

The MACD line is the difference between a 26 period ema and a 12 period ema.

ema = exponential moving average

The Signal line is simply a 9 period ema of the MACD line.

If you were using a histogram (which we are not in this example) it would be the difference between the above lines.

The MACD is based on moving averages, which of course are derived from price, therefore it is a lagging indicator.

Typically, buy signals are taken when the MACD line crosses above the Signal line and sell signals are taken when the MACD line crosses below the Signal line.

Another way that some get trading signals from this indicator is when either the MACD or Signal line crosses the Zero line.

MACD TRADING SYSTEM SIGNALS

This MACD trading system does use the above methodology. well, actually only part of it is used. Here the Signal line is used as a trend indicator and MACD line - Signal line crossovers are used as the trigger.

Buy Setup: Signal line (yellow) is above the zero line, indicating an UP trend.

Buy Trigger: MACD line (green) crosses above the Signal line.

Exit: MACD line crosses below the Signal line OR alternate exit.

Exit: MACD line crosses above the Signal line OR alternate exit.

The example 2 min. chart of QQQQ below shows two winning trades and one losing trade. This MACD trading system keeps you from making trades that are not in the direction of the trend, as determined by the Signal line.

Notice that there were no long entries, because every time the MACD line crossed above the Signal line, the Signal line was below zero.

However, a trader with experience would've noticed that after 1:30 pm the Signal line moved above zero, while at the same time price broke out of a triangle pattern and made two higher highs.

So, when the MACD crossed above the Signal line after 2:00 pm, and the Signal line was very close to zero anyway, that could've been used as a decent buy signal.

Strictly by the rules? No, but it makes good trading sense to me.

Forex trading strategy#12(arsalan-s adx macd)

Forex trading strategy#12(arsalan-s adx macd)Forex trading strategy #12 (Arsalan's ADX + MACD)

Submitted by Arsalan . our valued contributor.

I want to share one strategy which is based on macd and adx.

The strategy is as follows:

Time frame - Daily.

Indicators - Macd (3,10,18)

ADX(18) WITH + DI AND - DI LINES

Buy setup - macd should give buy signal.

+di should be above - di. if +di is below - di and macd gives buy signal then ignore it at that time and wait for + di to go above - di to make a long entry.

Sell setup - macd should give sell signal.

- di should be above +di. if - di is below +di and macd gives sell signal then ignore it at that time and wait for - di to go above +di to make a short entry.

Trading the macd divergence

Trading the macd divergenceTrading The MACD Divergence

Moving average convergence divergence (MACD), invented in 1979 by Gerald Appeal, is one of the most popular technical indicators in trading. The MACD is appreciated by traders the world over for its simplicity and flexibility because it can be used either as a trend or momentum indicator.

Trading divergence is a popular way to use the MACD histogram (which we explain below), but, unfortunately, the divergence trade is not very accurate - it fails more than it succeeds. To explore what may be a more logical method of trading the MACD divergence, we look at using the MACD histogram for both trade entry and trade exit signals (instead of only entry), and how currency traders are uniquely positioned to take advantage of such a strategy. (To learn more, see The Greatest Currency Trades Ever Made and Technical Analysis .)

The MACD histogram is an elegant visual representation of the difference between the MACD and its nine-day EMA. The histogram is positive when the MACD is above its nine-day EMA and negative when the MACD is below its nine-day EMA. If prices are rising, the histogram grows larger as the speed of the price movement accelerates, and contracts as price movement decelerates. The same principle works in reverse as prices are falling. See Figure 1 for a good example of a MACD histogram in action.

Trading strategy using macd

Trading strategy using macdMACD BB DAY TRADING

MACD BB's used in day trading has been going on for a very long time. There are tons of variations of this indicator being used and no matter how you alter the basic indicator the MACD's are used as a momentum indicator as well as a support and resistance indicator. It is one of the most basic indicators on the market and used by thousands of traders.

Using the MACD for Day Trading is not complex at all. MACD stands for moving average convergence divergence and I won't get into all of the technical jargon as to why and how it works but I will tell you that it's very effective when applied to day trading the correct way. This indicator is one of the primary aspects of my own day trading strategy .

macd lines

There are four different parts to a MACD indicator, there are the BB's themselves, the zero line, and the bollinger bands. Since we think of the market as going up or down we can consider the momentum up when the MACD's are above the zero line and vice versa when they are below the zero line. The farther the bands are from the zero line the stronger the market is in that direction.

The MACD indicator can also be correlated to the price of a certain stock or index in order to identify areas of weakness and even strength. There is a concept called divergence where there is a difference in movement between price and the MACD's that can be very effective when combined with other day trading indicators .

I have been using the MACD indicator for close to ten years in my own day trading strategy. If you are interested in learning how to day trade just shoot me an email I'm always willing to talk to other traders about their own day trading or even if they want to get started.

Macd entry strategy

Macd entry strategyMACD entry strategy

This is one of best strategies for new traders. You can actually use it in different ways to determine trend and also reversals and of course signals for trading. Best time frames to use it are short but you can apply it to any time frame. The strategy itself deserves that their author is also written, in this case this is James Ayetemimowa. As we said, it is simple strategy that uses MACD. Good thing is that it follows the trend and uses more then one indicator to determine entry point which is great for binary options trading.

STRATEGY SETUP

INDICATORS TO USE ONA CHART:

100 SMA (RED)

MACD (DEFAULT SETTINGS 12, 26, 9)

Simple macd forex strategy

Simple macd forex strategySimple MACD Forex Strategy

MACD is one of the most commonly used trading indicators in forex. This utterly simple strategy will help you to trade with the short-term trend.

Trading sessions: All

Currency pairs: All

GBP/USD 4 Hour Chart Example

Trading Rules

MACD histogram closes above its zero line from below.

Place protective stop-loss below the most recent support area. Take profit when the MACD crosses below the zero line from above(basic MACD exit strategy).

Other buy exit strategies: Exit long trade at 1:2 risk-to-reward. Exit at key resistance levels. Exit long trade at trend line violation.

Trend Line Violation (GBP/USD Long trade closed for 464 pips)

MACD histogram closes below its zero line from above.

Place protective stop-loss above the most recent resistance area. Take profit when the MACD crosses above the zero line from above(basic MACD exit strategy).

Other sell exit strategies: Exit short trade at 1:2 risk-to-reward. Exit at key support levels.

Advantages of basic strategies with MACD

Very easy to apply. Works well in trending markets.

Disadvantages

It doesnt perform well in range-bound flat markets. Use in conjunction with other indicators or techincal analysis tools.

Forex simple trading strategy with macd and cci

Forex simple trading strategy with macd and cciForex Simple Trading Strategy with MACD and CCI

Forex trader can apply MACD and CCI for the purpose of entry and exit in Forex.

Currency Pair: Any Currency Pair

Time Frame: 4 Hour

Explanation:

Forex Trader needs to apply MACD (12, 26, 2) and CCI (14) so that mix blend of volume and price indication come.

Forex Chart with MACD and CCI

Open Long Position when MACD +100 is operating above demarcation Line and CCI crossing above Level Line. Position should be closed once CCI crossing below Level Line and MACD falling Below 100.

Open Position to sell when MACD -100 is operating below Demarcation Line and CCI crossing below Level Line. Position should be closed once MACD start picking level 100 and CCI narrowing Down Gap.

Time frame recommended: 4 Hours.

Trader can take Long position once buying signal being generated by CCI and being supported by MACD.

Macd-stochastic double cross system

Macd-stochastic double cross systemMACD Stochastic Double Cross System

What would happen if we combined the indicators from different systems? Would they work together to make a stronger system or would they work against each other?

I recently covered a MACD Trading System and a Stochastic Trading System. Combining these two systems can give us stronger signals. This should, in theory, help to reduce false signals.

MACD Stochastic Double Cross System

Once again, we will use the 200 unit simple moving average (SMA) to define the direction of the long term trend. It is always better to trade in the same direction of the general trend. Using the 200 unit SMA here will keep us from attempting to swim against the current.

Basically combining the two individual systems, this system will look for a MACD cross signal within two days of a Stochastic cross signal. Due to the nature of these indicators, it is important that the Stochastic cross happens first.

Targeting the situations where both systems agree should isolate only the very strongest signals, thus increasing the win rate.

Trading Rules

Chart and Instrument: Any

Period: Any

Market Condition: Trend

Go Long When:

Price Closes > 200 Day SMA

Forex trading strategy#40(macd fast stochastic)

Forex trading strategy#40(macd fast stochastic)Forex trading strategy #40 (MACD + Fast Stochastic)

Submitted by chrisforextrader

Simple Strategy. Using Slow MACD Fast Stochastic.

Timeframe: Any

Currency:Any

Market Action: EMA21 + EMA55

Price Action: EMA5 + SMA8

MACD: 21 55 8

Stochastic: 8 3 5

This strategy is very simple and successful but will not get you in at the beginning of the move or exit at the end but will give a high success rate.

When the MACD Line and Signal Line cross, wait for the Stochastic to cross in the same direction. (Don`t trade if Stochastic in overbought/oversold zones)If you are an agressive trader you can enter when the MACD and Stochastic cross at the same time, otherwise once the MACD has crossed, wait for the Stochastic to cross before entering. (The MACD must cross first!!)

Exit the trade when either the price action is clearly showing a change in direction (Long - Lower Highs) - (Short - Higher Lows) or the MACD lines cross back.

Purple = MACD/Signal Line Cross. Red = Stochastic cross / Entry. White = Exit

Parabolic sar and macd forex trading strategy

Parabolic sar and macd forex trading strategyParabolic SAR and MACD Forex Trading Strategy

30 minutes.

MACD (12, 26, 9),

Parabolic SAR default settings (0.02, 0.2)

Enter a long position when the MACD fades out and its line crosses upward and the Parabolic SAR starts aligning below the candle.

Parabolic SAR and MACD Forex Trading Strategy Buy Signal

Our trade exit should be on the formation of first Parabolic SAR dot above the candle sticks or on the formation of the MACD bar that’s shorter than the previous (declining MACD bars).

The example above shows a long entry trigger on the MACD fade, along with the line crossing upward and at the same time the Parabolic SAR appearing below the candle. Our exit is initiated on the triggering of either of both conditions for exit (declining MACD bars prior to previous and the formation of Parabolic SAR on the opposite direction).

A sell signal is eminent when the MACD bars fades with the line crossing downwards.

Parabolic SAR and MACD Forex Trading Strategy Short Signal

Exit Strategy:

The short signal should be terminated when the MACD bars starts declining prior to the previous or on the formation of the Parabolic SAR on the opposite side as shown on the chart above.

Thread macd scalping strategy

Thread macd scalping strategyThread: MACD Scalping Strategy

Join Date Sep 2009 Posts 385

MACD Scalping Strategy

I found this method on Youtube. The web page for the most part seems to be inactive. I give full credit to aguywhotrades/forum. I have started using his methods with some variations with some success.

I have traded Forex, futures and equaties with some success over the years. I have posted a couple of methods on this thread in the past. I'm posting this strategy here with the purpose of discussion and the goal of improved trading.

one minute chart

One minute chart. Often use 2 minute, and 233 tick

MACD 12,26, 9 EMA

MACD 3, 21, 8 EMA

Entry short is when the MACD has crossed. The Para Sar is above the candles, when you see a candle stick close above the 7 EMA, and then a candle close below the 7 EMA. I usually go for about 6-9 pips in this time frame. The target is relative to the recent range of price action.