Macd/RSI price action Stragery
Before i get started i just wanna say i am currenlty 17 and been trading for about 6-7months. i am on a demo account but looking to get a real account soon. This system made me 500pips last week and this week i have a few trades shaping up already. there is alot of oppurtunity with this system… HAVe Fun i tried to make it easy to understand. If you have any questions just comment!
[B]Pairs traded:[/B] Any pair I can get my hands on.
[B]Indicators:[/B] RSI MACD and I have pivot points on my charts but have them there for references.
[B]Time frames:[/B] I look for trades based on daily price action all the way down to 1 hour charts. The lowest time frame I would make trade on is 30min or 15min depending on the circumstances. Will elaborate more later…
I like to call this strategy The “MACD Curl.” First off before i even look for trades i draw my trend lines and support and Resistance zones in on my charts just like any other trader would do. Next thing i look for is “Curls” on The macd Indicatior. they look like this…
I know many systems consist on entering a trade if those lines cross over but ive have come to realize tht alot of the times once they cross the initial move of the trade is already over. this means if i were to enter the trade later i would have to risk more pips to stay in the trade because i would have to put my stop further away from the price. So i try to enter these trades before they crosss and when they look like a curl. the “Smoother” the curve i find that the trade is more reliable.
[B]Entering the trade[/B]
I then look at the RSI indicator and if its in the oversold or overbought area i Continue with my process. i dont like enter these trades if the indicator is in the middle of overbought and oversold. The next thing i do is i look at the price action. i look for trend lines and support and resistance zones. I only take these trades if there in these zones. Taking these trades when price is just in the middle of no where i find isnt very smart because there really isnt anything there to Support why the price would revere there. The PRICE Action is the most important factor of the entry. so if price is in a support zone the “Curl” should look like the first picture. if its in a resistance zone it would look like this…
[B]Getting in at the best spot[/B]
Pinpointing the best spot to get in the trade is something that you need to be in front of the screen for. Usually with these trades there is a strong movement in either or direction then price starts to range on the lower time frames. then the price breaks out of the range and “Rolls over” and moves in another direction.
This what the range may look like:
ANd if you zoom out to the 1 hour time frame you can see the curl forming.
This is an example of a range that occurs with a “Curl” trade. this is a good example because if you look left price reversed there not to long ago and also price has reverse within the square other times as well in the past. The range may occur on a different time frame then the 15min. Usually when i take a “Curl” trade on a 4 hour chart the range is visible on the 15min or 30min. And When i take “Curl” trades on the 1hour chart there usually occur on the 5min or 15min. So if the the Curl is in a support zone i try to get in on the bottom of the range that is occurring and visa versa if the Curl is in A Resistance zone. this minimizes my risk by alot. my stops can be just below the range or the support/resistance zone that is there. My average stop out is about 15-25pips and my average win is 80pips.
I split my positions in half so i can have Two TP. these are placed differently every trade. and i usually move my stop to break even once breaks through the range. Like i said the entry on this system is crucial.
If you have gotten to this point in the post i thank you ! Like i said earlier if you have any questions just comment below! THANKS