MACD Divergence strategy for brokers – on-line Trading strategies

The strategy MACD:

The strategy MACD Divergence hears to the most reliable commercial strategies in the Forex trade. With this strategy the commercial signals from the divergency are generated by MACD line and the course of the currency pair. There is with this strategy though none exactly to defined ones one and climbing out points, however, the signals very simply reveal themselves.

Advantages of the strategy MACD Divergence:

• signals simply to be recognised
• only 1 standard indicator must be considered
• relatively good profit relation

Disadvantages of the strategy MACD Divergence:

• rather inexact Stop-Loss and take profit brands
• few signals in big time windows

Use of the strategy MACD Divergence

1. Basically this strategy is suited for all currency pairs. Indeed, rather shorter time windows are suited, because these generate more signals and offer better possibilities.
2. First it is added of the Moving ave rage Convergence/Divergence (MACD) indicator to any Chart.
3. Afterwards you put the quick EMA on "12" and the slow EMA on "26".
4. The MACD-SMA is put on "9" and the option „applying on“ on "Close".
5. If the course shows a downward trend and the indicator MACD an upward trend you go for Long.
6. The other way round if the indicator MACD a downward trend and the course an upward trend points you go Short.
7. If you Short go you put the Stop-Loss on the next support area. Go Short it is put of the Stop-Loss on the next opposition area.
8. With Long the take profit is put on the opposition area and with Short on the next support area.
9. If the system generates a return signal the open one must be closed before the opening of a new position.

Example like the strategy MACD Divergence can affect

The graphics show the currency pair to EUR/USD in the M30 time window. The Chart shows clearly that the price sinks, while the indicator MACD for a longer period shows an upward trend. The possible entrance indicates the point to see a return with which and an entrance in the Trade would be possible. The stop Loss was laid on support and the take profit on opposition.

MACD Divergence strategy test

As are already mentioned the Stop-Loss and take profit brands with this strategy rather inexactly. Therefore, it makes sense to test the strategy first with a free demo account. Use our broker to comparison around the best Forex broker for a strategy MACD Divergence to find.

The strategy MACD with tools of the Stochastik infers

To be able to apply this strategy already as a beginner, the indicator MACD and tools of the slow Stochastik are used. As commercial signals it is put on Call or Put. The time window amounts with this strategy 10 minutes, however, can be also bigger. This strategy can be also used by professionals. What concerns the commercial duration, this should amount to at least 2 candle periods. Two gliding averages form the basis as is known of the calculation. These are extended by a Trigger. Normally a Wochenchart is used in the system 12/26/9. This can and should be adapted with later collection of experience to own commercial abilities.

The indicator MACD: Exactly looked

The indicator MACD is often used in the Trading. Besides, these are before all new beginner who know how to handle without market knowledge or extensive experiences in mathematics with this indicator and the matching strategy. Detached by the strategy MACD it concerns with the MACD as an indicator a technical indicator which belongs to the trend follower's group. This trend follower decreases to Gerald Appel. The indicator found out his first application already in the 60s instead of. Now since beginning of the 80s this indicator is available to the national and international traders. Without strong marketing which there was not in this time anyway yet the triumphal procession of the trend follower took his run. The MACD Histogramm also offers action tips. These express themselves in the fact that with an increase of the Histogramm line the buying power increases. With a descent of the Histogramm line selling is announced.

Today the indicator MACD has developed to a base indicator which is not to be imagined as not existing any more in the technical literature and trade on the stock exchange. After experiences with the indicator MACD qualities belong, how reliability and a high accuracy clearly to the trains of this indicator. What concerns the naming of the indicator, it follows logically two central subjects of the gliding average, in the English one: Moving Averages. Other component of the name, and for this stand C for Convergence and D for Divergence, the movement possibilities are away to each other there or of each other. Other application possibilities of the indicator MACD lie in the form of the signal giver and Momentumundikators. Besides, the indicator MACD with the divergency investigation can offer a basic support.

In the essentials the indicator MACD is used within the scope of the technical analysis. Besides, there is no universally valid recipe which makes this indicator a "monetary machine". Since for this the reliability of the statements which are delivered by the indicator is mostly enough not from. That's why the strategy has developed to use the indicator MACD together with other indicators and to receive thereby better trends for commercial decisions. If only the indicator is still used, he is used, primarily, as a signal for the position size, as well as the purchase or sales. However, experiences show that more reliable results can be achieved by the combination with other indicators.

A concrete application of the indicator MACD appears in the management of Stop-Loss. If a weak moment is given or divergencies are to be recognised, then the action instruction is to be released for every trader the stop orders.

The present is more important than the past

The indicator MACD is calculated by a 26-days average the 12-days average simply exponentially and is drawn off. Because a calculation on 1-weeks, 2-weeks, 3-weeks or 4-weekly base can occur, it is absolutely possible that to itself the trader falls with the 26-days average a decision for a 26-weekly average. To make a decision concerning the buying or selling, the zero line and the situation of the ave rage's points are easier consulted. With a crossroad of the zero line of the indicator from below upwards, the investors got the unequivocal signal to shop. With the reverse movement sell traders. If this strategy is combined after the sales with the purchase of Short-ETFs, can be achieved in spite of the real sales and next buying substantial yield. This strategy has her right to exist for over 20 years. As can be proved there are enough experiences of amateur traders up to professional traders. Indeed, the indicator MACD like so many other indicators also has his weaknesses. Thus the hit rate of the MACDs can be kept only if the traders with real and lasting discipline go forward.