Complex trading system #3 (MACD Divergence)
Submitted by Edward Revy on April 19, 2007 - 16:55.
Currency: EUR/USD (preferred) or any other.
Time frame: 30 min.
Indicators: MACD (5, 26, 1) – draw 0 line,
Full Stochastic (14, 3, 3)
EMA 3
SMA 13
Trading rules: watch for divergence between the price on the chart and MACD or between price on the chart and Stochastic.
Read entire post >>>
Hi I have a question on divergence. Do you see a peak to peak on the actual price then you check if there is divergence on MACD? Or do you do the reverse; that is 2 tops on MACD then see if there is divergence on price? thanks
It works both ways, but most of the time it is price peaks then MACD peaks.
Regards,
Edward
Hi,
Here is a video from Mark McRae on divergence with Stochastic. It can be applied to MACD as well. It adds up to previous explanations using EMA crossover, trend lines and support/resistance.
Chamane
The only ones making profits on it, is the mafia(brokers, banks, and forex systems vendors), i am tired in loosing in this financial jungle. i am in bankruptcy, with high credit cards debits
"The only ones making profits on it, is the mafia(brokers, banks, and forex systems vendors), i am tired in loosing in this financial jungle. i am in bankruptcy, with high credit cards debits"
It looks like somebody was so stupid not keeping a good money managment and using a method like scalping. Next time, do something better ...
Wanna trade divergence like a pro?
Check out this guide for MACD divergence
A guy there is giving almost a ready strategy of entering with MACD divergence and MACD histogram.
Any EA or Indicators for the strategies?
Here is the MACD divergence indicator.
For the best effect, place it on top of the regular MACD in MT4.
FX5_MACD_Divergence_V1[1].1.mq4
Best regards,
Edward
Post new comment