Forex trading strategy #20 (Trading MACD consolidation)
Submitted by Edward Revy 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
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