Forex trading strategy #27 (MACD + Stochastic daily)
Submitted by User on December 27, 2009 - 14:51.
Submitted by Arsalan
Here's a new strategy which i have started using recently. This is a very simple strategy and it requires two simple indicators i.e Macd and Slow Stochastic.
Time frame - Daily.
Indicators - Macd(8,18,14)
Slow Stochastic - 10.
BUY SETUP- a) Slow Stochastic must be below 80
b) Buy when Macd gives a buy signal.
SELL SETUP- a)Slow Stochastic must be above 20.
b)Sell when Macd gives sell signal.
Stop loss - Keep stop loss according to your risk taking capacity. I prefer keeping stop loss below the previous swing low if i go long and above previous swing high if i go short.
Target - I prefer using trailing stops to exit my trade because it helps to capture maximum profit. Other method of exiting a trade is to exit when the price reaches near support/resistance area and stochastic is in overbought/oversold zone.
I hope i am not disappointing you Edward by posting this system which is similar to other systems on your website. I know this method is very simple and similar to other systems on this website but i have got amazing results from this system. I hope you will like this strategy.