MACD Histogram Intraday Trading - forex trading peak hours

MACD Histogram Intraday Trading ~ forex trading peak hours

MACD Histogram intraday trading is a trend following strategy.

Currency pairs: EUR/USD, GBP/USD, USD/JPY.

Sessions: London and New York.

Time Frame H1

MACD Setup: 12,26,9.

In this strategy we analyze the correspondence between the candles and bars of the MACD.

When an candle close we see the colour of the candle, the open, the low, the high and the histogram bar of the MACD (12,26,9).

Buy

Candle closes as a blue candle and the MACD Histogram bar is above zero level or crosses upward go buy and place a buy order one pip above the high of this candle.

Sell

Candle closes as a red candle and the MACD Histogram bar is below zero level or cross downward, go short and place a sell order one pip below the low of this candle.

Exit position at close of the entry candle

This method of trading is also applicable to higher time frames as H4, H8, H12, and daily.

4h time frame setting:

Currency pairs majors;

MACD Setting for H4 time frame is (8,17, 5);

Optional profit target 15-20 pips.

Daily time frame setting:

Currency pairs majors;

MACD Setting for H4 time frame is (8,17, 5);

Optional profit target 30-40 pips;

Below exmple of how to use this trading system.

MACD Histogram Intraday Trading

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Momentum scalping trading with MACD - forex trading hours nz

Momentum scalping trading with MACD ~ forex trading hours nz

Momentum scalping trading with MACD is a strategy for intraday trading, the but of this strategy is to capture the small reversal movements of the price.

Time Frame 5 min.

Indicators:

Moving Average 15 period linear weighted,the moving average is used to helps us determine the trend for trading.MACD (Moving Average Convergence Divergence) histogram which helps us for determine the momentum of the price.

MACD Histogram settings is the default, EMA = 12, EMA = 26, Signal EMA = 9, close price.

Tools optional:
Pivot Point levels as exit point or static dynamic resistance and support.

Trading rules

Buy

1) The price to cross above the 15-period LWMA, and the MACD above the zero.

2) Go long when the price retraces to the 15-period LWMA.

3) Place initial stop at swing low on 5 minute chart or place stop 20 pips below 15-period LWMA.

Sell

1) The price to cross below the 15-period LWMA, and the MACD below the zero.

2) Go short when the price retraces to the 15-period LWMA.

3) Place initial stop at swing high on 5 minute chart or place stop 20 pips above 15-period LWMA.

Variant with support and resistance.

Drawing on the chart, lines of support and resistance where the price must have bounced at least 2 times.

Buywith the previous rules only if the pricehas formed a support.

Sellwith the previous rules only if the price has formed a resistance .

Make profit 
1) with two predetermined target profit (after the first TP move stop loss at the breakeven, the advantage of this: is lock in gains and ensures that we never turn a winner into a loser.)
2) At the pivot points levels or midpoint levels.
The advantage of using support and resistance as a starting point of this strategy is to avoid many false signals.

Examples

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The Broken Wave Trading System - forex trading hours easter

The Broken Wave Trading System ~ forex trading hours easter

The Broken wave is a classic trading system discretionary based on indicators of momentum, trend and volatility. This strategy requires practice.

Time Frame 15 min, 30 min, 60 min, 240 min.

Currency pairs majors.

Indicators:

Bollinger Bands (20, 2),

Simple moving average 10 period (close),

Simple moving average 20 peiod (close),

MACD (12, 26, 9),

PSAR Defaul Setting.

Buy trade

1 Wait for PSAR to form below price.

2 Chek that MACD histogram has crossed above the signal line.

3 Chek that the Bollinger Bandsare starting to widen or the price broken the upper band.

While this step is not essential, if the condition is met you will usually find the signal to be stranger.

4 The 10 SMA and 20 SMA are starting to convergewnce (move closer toghether) or the SMA 10 has already crossed above the 20 SMA.

5 When a candle has closed above the 10 SMA and SMAs, enter a buy trade. 10 SMA does not need to cross the 20 SMA at entry, but price must close above both Smas.

6 Set a stop loss under recent swing low up to a maximum of 25 pips. Move your stop loss breakeven when price goes 10 pips in your favor. Optional -when price gets 10 pips in profit, set a trailing stop of 15 points.

Sell Trade

1 Wait for PSAR to form above price.

2 Chek that MACD histogram has crossed below the signal line.

3 Chek that the Bollinger Bandsare starting to widen or the price broken the lower band.

While this step is not essential, if the condition is met you will usually find the signal to be stranger.

4 The 10 SMA and 20 SMA are starting to convergewnce (move closer toghether) or the SMA 10 has already crossed below the 20 SMA.

5 When a candle has closed below the 10 SMA and SMAs, enter a sell trade. 10 SMA does not need to cross the 20 SMA at entry, but price must close below both SMAs.

6 Set a stop loss above recent swinghigh to a maximum of 25 pips. Move your stop loss breakeven when price goes 10 pips in your favor. Optional -when price gets 10 pips in profit, set a trailing stop of 15 points.

 Broken Wave trading system

Broken Wave trading system

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MACD 5 bars histogram - forex market hours new years eve

MACD 5 bars histogram ~ forex market hours new years eve

The MACD 5 bars histogram is an excellent swing trading strategy for beginners. The beauty of this strategy is that it does not require you to monitor the market for a long time. It also signals you well in advance as to when the entry of a trade is about to take place.

When prices rise, the histogram bar becomes longer as the speed of theprice movement accelerates; the bar contracts as price movement decelerates. The same principle applies when prices are falling, but the histogram bars form at the bottom.

Time Frame: H1 and H4;

Currency pairs:majors.

The MACD histogram indicates the direction and momentum of the market. When the MACD histogram switches from negative to positive, this indicates a possible upward shift in momentum. We wait for fi ve positive bars on the histogram to confirm the momentum before entering a long

trade on the fi fth bar. No prizes for guessing why the name of this strategy is called the fi fth element!

When the MACD histogram switches from positive to negative, this indicates a possible downward shift in momentum. We wait for fi ve negative bars of the histogram to confi rm the momentum before entering a short trade on the fifth bar.

Buy

Wait for the MACD histogram to go from negative (<0) to positive (>0).

Wait for four positive bars to form on the histogram before going long

on the opening candle of the fifth histogram.

Set the stop loss at the last low histogram.

The trade will have two profit targets with risk to reward ratios of 1:1

and 1:2 respectively.

Sell

Wait for the MACD histogram to go from positive (<0) to negative (>0).

Wait for four negative bars of the histogram before going short on the

opening candle of the fi fth histogram.

Set the stop loss at the previous high swing.

The trade will have two profit targets with risk to reward ratios of 1:1

and 1:2 respectively.

MACD 5 bars histogram buy example

MACD 5 bars histogram sell example

  

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Power Bollinger Bands - forex trading hours australia

Power Bollinger Bands ~ forex trading hours australia

Power Bollinger Bands is trading system based on the Bollinger Bands, Stochastic Oscillator and the patterns formation.

Time Frame 4H or daily.

The system works on any pair and Indices.

Setting Chart

Indicators:

Bollinger Bands: period 20, deviations 2;

Stochastic Oscillator (9, 3,3, with levels 80 and 20) that measures overbought and oversold of the price in the market.

Patterns: doji, engulfing pattern, inside candle, pin candle.

Trading Setup

When the Bollinger bands are far enough, wait that the price touches or broken a band, while the stochastic is in a state of overbought (above 80) or oversold (below 20).

Once both of these conditions are met we seek confirmation of entry into the market.

So looking for the following patterns: Engulfing pattern, Pin bar , Inside bar and Doji.

Doji candle:the Doji is a candle indicating a period of indecision of the market the open and close have the same price. The Doji can be interpreted as a reversal signal if it appears with stochastics in overbought or oversold along with the price at the sides with Bollingher bands.

Engulfing pattern: an engulfing candle or also momentum candle, becaouse this pattern is a change of the momentum of the market. the first candle is completly engulfs by the following one.

Inside candle: the inside candle pattern is the complete opposite of the engulfing pattern, the second candle is formed completely inside the body of the previous candle.This pattern may provide a price breakout.

Pin Bar: the pin pattern , it shows huge emotion of the market indicating a potential sign of a reversal of the price.

Example: the buyers pushed the market high but failed to hold it so price returned back to around the open leaving a pin pattern or opposite the sellers pushed the market low but failed to hold it so price returned back to around the open leaving a pin pattern.

Engulfing formation and pin bar pattern are most reliable with a little practice youll soon learn to recognize these patterns and can represent your success.

Trading Rules Power Bollinger Bands

Buy

Bollinger bands are far enough and the price touches or broken lower band,

Stochastic is oversold,

Once both of these conditions are met, we seek confirmation of entry into the market,so looking for the following patterns: Engulfing pattern, Pin bar , Inside bar and Doji.

Sell

Bollinger bands are far enough and the price touches or broken upper band,

Stochastic is overbought,

Once both of these conditions are met, we seek confirmation of entry into the market,so looking for the following patterns: Engulfing pattern, Pin bar , Inside bar and Doji.

Exit position

Initial stop loss on the previous High/Low after move stop loss at the break even

make profit at the middle band or at the opposite band.

EUR/USD 4H chart

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Senin, 21 Maret 2016

Exiting a trade - forex trading hours easter 2015

Diposting oleh fredi , di 22.25

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Exiting a trade ~ forex trading hours easter 2015

Exiting Strategies: Targets

Support and Resistance levels

1 Short trades look for recent levels of support. Place your pips a few pips above these areas.

2 long trades look for recent levels of resistance. Place your pips a few pips below these areas.

Exiting Strategies: Dynamic

Trendlines

Short trades, use a trendlines across the top of the price. Draw it as tough you were looking for a long trade. Close short when price closes across trendline.

Long trades, use a trendlines across the bottom of the price. Draw it as tough you were looking for a short trade. Close long when price closes across trendline.

Moving Averages

Short trades, close trades when you get a bullish cross of 2EMA over 5 EMA.

Long trades, close trades when you get a bearish cross of 2EMA under 5 EMA.

Divergence

Short trades, when bullish divergence shows up, close the trade when you get a bullish Stochastic crossover.

Long trades, when bearish divergence shows down, close the trade when you get a bearish Stochastic crossover.
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