Forex trading strategy #4 (Simple 1-2-3 swings)

Thank you, rockrobb

I'm glad you liked this simple but effective strategy; thank you for your feedback and kind words.

Best regards,
Edward

Hi Edward,
Using MACD as "trend indicator" do we look at the histogram or the signal line?

Thanks Joyce.

Hi Joyce,

we are looking at MACD lines, not the histogram.
To match it on MT4, here is a custom MACD: MACD_2_Colour_HISTOGRAM.mq4
(Change MACD settings to standard 12, 26, 9, but you can also test with those new settings)

Best regards,
Edward

With special thanks to Manus168,
here is a link to custom 123 recognition indicator:
http://forums.forex-strategies-revealed.com/123-pattern-recognize-indica...

Regards,
Edward

Dear Manus168,

I refer :

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For Entry Point we can use:

Sell ENTRY :

Point 3 - (Point 1 - point 2 / 4)

BUY ENTRY :

Point 3 + ( Point 2 - Point 1 / 4)

All the Best;

Manus168
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I seek your clarification.
Is it Point 1 divided by 4 in the case of buy entry or is it Point 2 minus Point 1 then divided by 4?

Thx in advance.

Hi Edward,
it seems that this strategy is profitable... but i still wondering, how do I distinguish between applying Expansion for buy or for sell?

Thanks..
Adi.

Hi Adi,

when you use Fib expansion, you have to connect 3 points.
If you use MT4, select Fibonacci expansion tool, start with Point 1, drag the tool to point 2. Stop there. You've now got two points connected with the third one still hanging in the air. Extend the line of the Fib tool and connect it to point 3.

Best regards,
Edward

Hi Edward,
There is something which i like to clarify, we do a 'buy' when MACD line and the setup of point 1-2-3 is above zero, am I right? Or just point 2 and 3 above zero?

Thanks
AG