38# MACD Strategy with pattern MACD Trading System
Setup
1. 365 Exponential Moving Average (365EMA)
2. 200 Simple Moving Average (200SMA)
3. 89 Simple Moving Average (89SMA)
4. 21 Exponential Moving Average (21EMA)
5. 8 Exponential Moving Average (8EMA)
MACD:
MACD settings at
1. Fast EMA 5
2. Slow EMA 13
3. MACD EMA 1
Horizontal Lines:
Three sets of horizontal lines above and below zero should be drawn on the MACD
window at levels as well as one on zero
1. Level +0.0015
2. Level +0.0030
3. Level +0.0045
4. Level –0.001
5 Level –0.0030
6.Level –0.0045
The MACD moves in certain patterns that when recognized can be very profitable
trades. Let me show you the very important ones first. By not following every signal
but only the ones that gives high probability trades through certain MACD patterns
serves as a filter.
The ones not familiar are not taken. This is the filter.
Countertrend trades can be dangerous as it involves going against the trend. When
going countertrend determine the resistance.
This pattern comes very regular especially A and D as the MACD has moved beyond
the 0.0045 level and are due for a correction and or trend reversal. B and C are trend
continuing patterns and are entered in the direction of the trend. Red circles indicates
entry signal and entry is made on the opening of the next bar.
The head and shoulder is another definite.
4Double top and bottom does not need any
introduction as it speaks in any timeframe.
5When the MACD comes down towards the
Zero line and turn back up just above the
Zero line it is normally a trend continuing
and should be taken and are normally a
strong move.
Pattern MACD
Ken (Saturday, 22 March 2014 04:00)
How is the EMAs associate with various MACD patterns? Please kindly share your opinion.