Complex trading system #11 (Trading MACD consolidation)
Submitted by User on December 17, 2007 - 13:58.
Current Forex strategy was submitted by Egudu - our valued contributor.
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I am egudu, and here's another strategy.
It's trading the MACD consolidation.
Time frame: 1hr
currency: any
indicator: MACD(12,26,9)
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Hi John,
Good question. Yes we should.
During MACD and price consolidation we often observe low Volume. But, when Volume picks up during consolidation periods it is a strong indication that market participants become very interested in that currency pair again and so a breakout is due almost immediately.
Additionally, with Volume we can determine a validity of a breakout itself. If a breakout occurs on low or decreasing volume, it most likely be a false move. Valid breakouts are always supported by rising Volume.
Regards,
Edward
Where the Stop Loss & Take Profit we put ?
TP is 30-50 pips from the entry.
SL is outside the previous price swing high/low.
Thomas
How do you get volume on currency pairs?
in MT4 you make a right click on the chart and in the menu 'Common' check the 'Show Volume', if that's what you mean.
Richard
has anyone tested this strategy? mind to share the result of your testing?
Good morning everyone
Edward / Egudu, by any chance, do you know about a manual or something like this, of how use the Good_Macd.
Thanks in advance
Luis
Hi Luis,
sorry for the late reply.
Good_macd is used the same way as regular MACD.
Where do you stuck: at installation point or with interpreting MACD signals on the chart?
Regards,
Edward
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