Forex trading strategy #7 (Simple MACD crossover)
Submitted by Edward Revy on February 28, 2007 - 14:40.
Trading with MACD indicator is widely used by Forex traders.
Let's take a glance at the very basis of currencies trading with MACD indicator.
We will need only MACD indicator with standard settings: 12, 26, 9.
Any time frame as well as any currency pair can be used.
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Hi Edward,
My name is An-An. great website by the way.
I just curios about this MACD thread and some other thread about MACD in this web. Why no one suggest about MACD (5, 34, 5) setting? yes, it is profitunity MACD (Bill Williams). is there something wrong with this settings? I'm very new to the world of FOREX. so every little explanation would be a great help for me. thank you in advance.
regards,
An-an
In our testing we have not seen good results with this type of strategy. MACD signal crosses can be effective in some situations. Such as when the MACD crosess the signal line and MACD is above 0. If your interested in the rest of our findings, check out MACD Strategies
Hello Edward.
My name is Panos.
"I am still very new to the forex trading and i am still using a demo account.
In any case, i tried to test the MACD method.
In some occasions i win 1-2 pips, but i noticed something.
Today i bought USD when the MACD's lines crossed downwards,and lines were below zero point, and i was expecting market to drop even further.
by the way, i bought at 1,2777. eventually market climbed to 1,2786...
still i cannot understand what was the mistake.
could you help me?
Pleased to hear
Brgds
The writer of this doesn't even understand the MACD. He says to watch when the lines cross. But the MACD itself is the difference of those 2. So a crossover shows that the MACD moves from positive to negative or the opposite. You just have to watch that.
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