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Forex trading strategy #22 (Best of MACD Entries)

NAME: JAMES AYETEMIMOWA
SITE: www.bondfx.biz
EMAIL: [email protected], [email protected]

INDICATORS:
- 50 SMA (GREEN)
- 100 SMA (RED)
- MACD (DEFAULT SETTINGS) or MACD Traditional


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Hi Edward,
In relation to your last post, so opposite applies for buy?

MACD lines cross BELOW zero level And
MACD lines are BELOW the MACD histogram?

*When you say above the histogram, it means BOTH lines appear higher/lower than the bar on the histogram?
*I notice that this rule misses out on many trends that occur when, for example the green SMA is above the red SMA but the MACD signal line is above the other MACD line.

Yes, opposite applies for Buy entry,
exactly as you said, just add the word "BOTH":

"BOTH MACD lines cross BELOW zero level And
BOTH MACD lines are BELOW the MACD histogram."

This approach misses on some trades, but with it it filters a lots of bad trades.
You can't catch each and every winning trade, some of them you'll miss, but the point is, you'll be kept safe away from many losing trades.

Regards,
Edward

New Flashing Chart Analysis: http://www.bondfx.biz/MarketAnalysis.htm

your system without any filter is bad, i have test it

I found this strategy have a similar parameter & Indicators with Boris & Kathy "MACD Combo Strategy" from his & her ebook : "High Probability Trading Setup For Currencies Market" BUT the different is Boris & Kathy only use in 60 Minutes & Daily TimeFrames, & this strategy in smaller Timeframe.

Regards;

Manus168

What Stop Loss should we use?

I'd use Parabolic SAR indicator OR previous swing high/low for stops, whichever is less distant.

Regards,
Edward

hello edward.. just wondering, y r u using sma instead of ema ? .. it seems the ema's r more responsive compared to the sma's.. any particular reasons ? thanks -ml-