MINE PROFIT WITH A COMBINATION OF MOVING AVERAGE AND MACD INDICATORS

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COMBINATION OF MOVING AVERAGE AND MACD INDICATORS


In the theory, trading based on trends is easy. All you do is look for Buy positions when you see prices going higher and only take Sell positions when prices continue to fall. But the practice it is not as easy as imagined.


In this review, I will review one of the futures trading strategy systems that will help you enter a position when a trend occurs at the right time with clear market entry and exit signals. This strategy utilizes the indicators that already exist on your Meta Trader trading platform, namely using the MACD and Moving Average indicators. The way this trading system works is to enter a Buy or Sell position only if the price cuts the Moving Average by looking at the trend that is formed, it's a good idea to practice this technique on a demo account first.

INDICATOR SETTINGS:


MOVING AVERAGE : SIMPLE MOVING AVERAGE (SMA) WITH PERIOD 50, WORKS AS A TRIGGER OR TRIGGER


MOVING AVERAGE : SIMPLE MOVING AVERAGE (SMA) WITH PERIOD 100, FUNCTIONS TO PROVIDE CLEARER TREND SIGNAL.

TIMEFRAME : HOURLY OR DAILY

STEP BY STEP ENTRY BUY WITH SAMPLE (GBP/USD PAIR, H1 TIMEFRAME)

Wait for the price to be above the 50 and 100 Simple Moving Averages


When the price breaks above the Simple Moving Average, enter a Buy position if the MACD cross becomes positive for at least five bars



Place a LOSS stop at the previous swing low. Take PROFIT twice the stop loss or if the price breaks at the 50 SMA. For example, I placed an initial Take Profit at 1.32610. But when the price broke at 1.32270, I put a Trailing stop at 50-60 Pips (Also Read: HOW TO AVOID LOSS WITH THE TRAILING STOP FEATURE). So I hit SL at 1.31666 with PROFIT 147.5 Pips.



Weaknesses of the MACD and SMA Combination Strategy

As you know other trading systems, where there is no perfect trading system as well as this combination trading system between MACD and Moving Average. This trading system will provide maximum results when applied to pairs that are in a strong trend. For this reason, be careful using this system when market conditions are sideways and also to anticipate it you can add 1 more indicator yourself as a confirmed or use the 21,34 and 90 EMA indicators to measure the strength of a trend.


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So, hopefully this article can make it easier for you to trade. Find information on fundamental and other technical analysis which is easy and suitable for you in all market conditions.

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