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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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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