Advanced MACD Strategy
Fifty Ninth session of Forex Training
Welcome back to Forex professional training in a financial market.
In this session Advanced MACD Strategy will be studied.
Advanced MACD Strategy
Advanced MACD is appropriate for in range market, while it generates false signals on volatile markets that would result in capital loss.
MACD property values should be 25, 41 and 21.
Advanced MACD generates signals whenever the signal line crosses the bars towards the top or bottom.
Trader can apply Advanced MACD on all symbols with range markets especially on EURUSD and GBPUSD.
A Buy order can be placed when bars and signal line are under level 0, and the signal line moves under the bars.
A Sell order can be placed when bars and signal line are above level 0, and signal line moves higher than the bars.
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Take Profit and Stop Loss prices
Take Profit value is between 22 and 63 pips based on other confirmations and type of candle pattern on the entry price.
Stop Loss price can be determined with different methods:
- SL can be placed on the spot where signal line passes the bars again.
- SL can be specified based on the analysis of future major calendared news.
- SL can be 21 to 40 pips away from the entry price.
Advanced MACD can be combined with RSI, Stochastic and candlestick patterns for more reliable signals.
On GBPUSD chart of MT4 platform, in H1 timeframe a trader can detect a point in which signal line moved lower than bars, as well as Engulfing Bullish candlestick on the market trend, so a Buy order can be placed on this spot.
Another example, signal line crossed the bars towards the top and a powerful Bearish candle has formed, so a Sell signal was generated.
In this example, signal line passed the bars towards the bottom when a Piercing Line formed in the market trend, thus, trader could place a Buy order on this point.
Another example shows that whenever a signal line crosses bars on a certain spot where a powerful pattern or candlestick forms, trader can place an order.
That concludes this session, until next time and another session take care.