Greetings everyone,
Last night was a great night to be using this system.
Unfortunately, all the action happened while I was sleeping!
But, I had been lucky enough to take a slight risk that paid off big time.
In an earlier post, I posted a picture of a possible trade setting up on the EUR/USD. The EMA’s were close to crossing and the RSI was descending and hovering around the 50 Line.
I set a SELL STOP order at 1.2585. This was around 20 - 25 pips lower than the current price at the time (not sure exactly, but around there).
I figured that if the price went down that much, the lines WOULD have crossed and the RSI WOULD have crossed below 50.
In short, I was right! My SELL STOP was executed while I was counting sheep. My T/P was hit for 50 pips even. I had used a S/L of 100, too.
Below, I’ll post the pictures of how it all went down. You’ll notice that in the second picture I have added the MACD indicator.
Here are the settings I use:
MACD
FAST: 5
SLOW: 9
MACD SMA: 4
I’ve noticed that this indicator only works about 75% of the time. Sometimes it’s late! Sometimes it does not agree with the RSI.
I think it’s only very accurate if it crosses from the top of the indicator bar to the bottom (with a big downward slope). It can provide justification though if both the EMA’s and RSI are showing a trade setup.
The MACD settings may need to be tweaked.
PICTURE 1 shows the possible setup approaching.
PICTURE 2 shows what actually happened.
The rest of the pictures will show you trades that all took place overnight that we all missed! We had literally a handful of viable trades.
Perhaps the best time to trade is during the night, after midnight?
Anyways, I’ll describe in another post a possible way to benefit from this.
Stay tuned.
Account Statistics:
Starting Balance: 1,000
Current Balance: 1,050
Equity Increase: 5%
Pips Gained: 50
Not bad for one night’s worth of sleep!
-ForexPhantom-