I have been using Macd to plan when to enter and exit a trade. But i understand that it gives late signals so to speak. I was wonder what would be a good indicator to to compliment the MACD. That would give a hint of what the market might do before the MacD
Also i have been using bolliger bands to to set my stop loss and take profit. Does anyone see anything wrong with this plan. I understand that every thing is not set in stone just looking for something simple. I have placed a few trades using this and it seems to work. and i make these trades on a 5-15 min chart.
Do at least 20 demo trades and add good risk control to you plan ie no more the 2% of the trading capital 1 - 1.5% is even better, do this even on the demo account to get into good habbits (this is the Holy Grail). Then document every trade - where you got in/got out, time of day, did you notice anything else on the chart that might of given you pause for thought, things like that the more info the better which you can use for later reference.
I can’t help with the indicators I’m sorry but you have 2 already, BB and MACD so adding another might just complicate things and create anayisis paralysis.
If your happy at the end of NO less than 20 demo trades then good luck and happy hunting.
Well let me ask you all this where should i place my take profit and stop loss at. Is it good to place near the bolliger bands or should i consider some wear else?
Hi pghud3 this is similar to the system I am using I only use the MACD and Bands but find you still get freak outs. on the whole tho i think this is a good system and is working for me. I hope one of the masters can give us another indicator that works well and ups the amount of profit trades.
Yea same here i find the macd is lagging and sometimes i can guess right when its about to change. But when i make profits they are always low because i place them near the bands, i don’t mind doing these but is do find this range to be small. hopefully someone will post idea about to set your profit limit higher while still not risking that much.
Oh and bigwilystyle9 do you use dynamic stop losses when using this strategy?
A very simple but effective approach is to enter when the MACD crosses, then exit when the histogram starts to lose steam. This is best used on daily and weekly charts. Back test and see which pair it works on best on and you’ll like the results. I use an indicator called “MACD Complete”, and I love it. Can’t remember where I got it, but a search should lead you there.
