Trading Setups Review Trading Strategies, Guides, and Articles for Active Technical Traders By Galen Woods in Trading Setups on January 21, Philip Nel started a thread at ForexFactory forum discussing the 4-hour MACD Forex Trading Strategy. It is an impressive forum thread. It began in and it is still active now. It has pages and growing. This trading strategy focuses on finding patterns for e.
Trading patterns off the indicator instead of price reminds me of the Woodies CCI. Learn: Trading with MACD This MACD forex trading strategy has many possible setups. Philip Forex recommended trend continuation setups for beginners.
I interpreted the strategy and came up with the following trading rules to trade continuations. The background color of the MACD indicator shows if MACD is increasing or decreasing. Strategy shows the end of a long down trend. Given a wider stop and a conservative target, we might have a winning trade. However, the bullish bar three bars after entry should have stopped out most traders. MACD is the common denominator of these trading strategies.
However, hour setting of the MACD indicator in this trading strategy removes its signal line. Essentially, forex MACD has become a Price Oscillator. Also, the five moving averages are too much for me.
While they offer a support and resistance framework, they clutter the charts. Hour, this strategy is effective in picking up retracement trading setups. It gives a decent strategy point for momentum trading on higher time-frames hour and above The 4-hour time-frame is unique to forex markets as it splits a 24-hour session into 6 bars.
In our review, we strategy on trading trend continuations. Avoid MACD signals near or beyond the last extreme of the trend. This is because this strategy makes use of the principle of momentum preceding price.
If price has already gone strategy the last trend extreme, then price has already caught up with momentum. The sweet spot of our trade timing is gone. Remember that this trading strategy presents far more opportunities than the continuation trades we looked at.
The thousand-page forum thread has everything you need to learn about this trading strategy. He scales into a position if the stop-loss is too far away to cut his overall risk. Afraid that your strategy strategy fail in other time-frames? Learn a simple two-bar pattern that you can find on all time-frames Read more about Forex TradingMACDMomentum Mark Markson says September 29, at AM Galen Woods says September 29, at AM I am no expert in this trading strategy.
But from the stuff Philip shared in his thread, for exiting, he uses a combination of support and resistance tools including Fibonacci targetstrend lines, and moving averages.
The best resource for the picking up this method is still the forum thread over at Forex Factory. Your email hour will not be published.
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All trades are random examples selected to present the trading setups and are not real trades. All trademarks belong to their respective owners. Reply I am no expert in this trading strategy. The forex resource for the picking up this method is still the hour thread over at Forex Factory Reply Leave a Reply Cancel reply Your email forex will not be published. Past performance is not necessarily indicative of future results The website contents are only for educational purposes.
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