Saturday, 14 October 2017

MACD Strategy

Long term strategy as simple as 1-2-3, with a two-step entry
  • Step 1 – Find MACD cross on weekly timeframe with price close to 200 MA
  • Step 2 – Switch to daily timeframe and draw horizontal price levels
  • Step 3 – Wait for the price to break at these levels before entry, with wide stops
  • Step 4 – Manage your risk and go with the flow

Example BLU
  1. On the weekly chart,  during the week of 13 July 2015 the MACD signal line crossed the MACD line while the price was closed to the 200 Moving Average.
  2. Then use 14 July 2015 high price as the price level
  3. And enter the trade when this price level is broken, with a wide stop just below lows during June 2015
Note: On the daily chart the price was also at the 200 Moving Average

The two-step entry
  1. Use the weekly MACD as the trigger and
  2. The broken price level as the confirmation entry point

Process Beats Outcome:
Do you want to be right or rich?
You really have no control over the results; you have control over your action.
What can you really control? How much you lose

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