Simple MACD crossover
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.
Entry rules: When the MACD lines’ crossover appears – enter (or wait for the price bar to close and then enter).
Exit rules: when MACD lines next crossover occurs.
Advantages: very simple approach and can give good profitable entries. Traders may want to change MACD default settings depending on the currency and chosen time frame. For example, traders may test next MACD set ups:
USD/CHF MACD (04, 07, 16), EUR/USD MACD (02, 03, 20), GBP/USD MACD (02, 03, 04) for different time frames.
Disadvantages: you will need to sit and monitor it again and again. MACD has little use in sideways trading market. It is also never used alone, but rather in combination with other indicators.
1.$SPY continues to make new all time highs in price. This is the most bullish signal. 2.The average true trading range continues to expand but the move is all to the upside. 3.MACD remains under a bullish crossover. 4.39 straight trading days with a price close over the 10 day EMA. This is incredible strength in an uptrend with little downside volatility. 5.A parabolic overbought reading at the RSI 84.12 is astounding and historical. This breaks all historical RSI trends and renders this overbought indicator of no help in this trend. 6.Trend following systems have done this best in this trend and beating buy and hold if leverage was used. 7.Trend trading methods are in favor leaving swing traders on the sidelines with no pullbacks to buy. 8.Buy and hold investors are looking like geniuses again with the speed and magnitude of this move which has been captured well in the stock market indexes. Their only signals are buy and hold and keep adding. 9.$VIX closed up last week at 10.16 as a little more risk is priced in as the market becomes so extended. Volatility was to the upside last week. 10.The only S&P 500 sectors not pressing all time highs is Utilities $XLU and Consumer Staples $XLP this is very bullish action across all stock market sectors. I continue to hold $ERX $UWM $IWC $QLD and $BIB trailing my profits with moving averages. My current position gains are: $ERX +41.6%$IWC +5.92%$BIB +12.81%$QLD +13.05%$UWM +23.95%
I have no idea if anyone previously shared this indicator, but this is one which gives clear signal for market trending or flat.If all color waves are under grey dark line, market likely go up and vice verseIf all color waves are scattered from grey line, it is flat...
Another form of support and resistance trading is called the Support Turned Resistance and Resistance Turned Support trading system. How The Support Turned Resistance And Resistance Turned Support Trading System Works Sometimes when price breaks a strong level of support, at some stage in the future, price rises back up to this support level that it broke previously only to be pushed back down from that previous support level. What has happened is that the previous support level has now acted as resistance level. The opposite is also true: a resistance level broken has the potential to act as a support level when price falls down to this resistance level it broke previously. Indicators Required: none Timeframes: Any Currency Pairs: Any Rules Buy Rules: Once Resistance Level is broken, wait until price starts to fall back down to the the resistance level it broke. Different types of orders can be used to enter into a trade: for buy stop order wait until a candlestick touches the level and place your order 2-5 pips above the high of that candlestick. Buy limit orders can be placed 2-5 pips above the resistance turned support line. Or you can buy immediately at market once price hits that level. Place your stop loss 10-30 pips below the resistance turned support line if you use buy limit and market orders. For buy stop orders, place 2-5 pips below the low of the candlestick that touches that line. For take profit targets, look for previous significant swing high and place your profit targets within that. Sell Rules: Once Support Level is broken, wait until price starts to rise up to the the support level it broke. Different types of orders can be used to enter into a trade: for sell stop order, wait until a candlestick touches the level and place your order 2-5 pips below the low of that candlestick. Sell limit orders can be placed 2-5 pips below the support turned resistance line. Or you can sell immediately at market once price hits that level. Place your stop loss 10-30 pips above the support turned resistance line if you use sell limit and market orders. For sell stop orders, place 2-5 pips above the high of the candlestick that touches that line. For take profit targets, look for previous significant swing lows and place your profit targets within that.