Tag: MACD

Modified Indicator Forexorama – MACD For MT4

The Forexoma-MACD is a modified indicator designed for the Metatrader 4 platform which is based on the MACD technical indicator. It was designed to be easier to read for the trader, as standard MACD signals can be somewhat complex for the beginner trader. In addition, it is designed to detect trend changes earlier as we will see later. It is a color-coded indicator which changes its color as soon as the analyzed asset changes trend.

This allows traders to detect the market trend much earlier than they could with the conventional MACD on the MT4 platform. The Forexoma-MACD actually works as a histogram whose bars change their color according to the current trend. Using the conventional MACD indicator on some occasions can cause traders to open their positions in the market when most of the price momentum is diminishing. This causes the trader to lose valuable pips of profit that could be obtained if he opens his positions earlier.

Trading system with stochastic oscillator and CCI indicator

by rcanessa

In this article we will present a trading system with stochastic oscillator that can be used to trade in any market and in any time frame (although it is preferable that the system is not used in time frames less than 15 minutes), which is based on the MACD, CCI and stochastic oscillator technical indicators. It is a technical trading strategy that provides clear buy and sell signals, as well as exit and take profit signals.

Because it is a system based purely on technical analysis, we do not recommend the trader to operate with this system in the periods in which economic news or important market indicators are published, since the trading signals of technical systems like this tend to fail.

As always, it is recommended to test this methodology with a demo account before using it to trade with real money.

Trading Systems Based on Moving Averages and MACD

by rcanessa

This is a trading strategy that can provide gains of between 20-30 pips per trade so it can be quite profitable. This trading system is very simple to use and its signals are easy to follow. The main features of this strategy are the following:

This is a trading system that combine the use of two well known technical indicators: moving averages and MACD. Also, the trader can use the Momentum indicator to confirm the trend direction. Basically, this system attempts to profit from changes in the market trend. The MACD and the Momentum are necessary because the moving averages crosses are not too reliable signals.

Moving Average Convergence Divergence Indicator – MACD Definition

by rcanessa

There are several ways of representing the MACD. Due to its popularity, I will dedicate the article to the representation of MACD on Metatrader platform.

The Moving Average Convergence Divergence or MACD, is one of the most widely known and used indicators in technical analysis. It is used both to indicate the market trend and the momentum of a movement. In summary, the MACD is an oscillator-type indicator that shows the distance between a fast exponential moving average (EMA) and a slow exponential moving average. Or what is the same, it shows the convergence / divergence of two exponential moving averages.

Skydive Trading System: A Lowry System Variation

by rcanessa

Introduction

The Skydive System is a trading system based in the strategy created by Scott Lowry (see the Lowry System), an American psychologist and trader that regularly speculate in the Futures market. Basically, this trading technique is based on the intersection of three exponential moving averages as shown in the image:

In the same way as happens with other similar trading strategies based on moving averages, in markets with low volatility and without a defined trend, the Skydive System often produce false signals. For that reason we can include a filter based in indicators like the MACD or the Williams %R.

This is a simple trading technique based in moving average crosses. It is based in the famous trading system developed by Scott Lowry, so is basically a trend follower strategy. For that reason is no recommended in markets that are moving in a range without a clear trend.