Entry is based on how much room there is to make pips before price would hit any of the possible exit signals. Exit signals are the 200 EMA, the mid point line of the cap channel, or the opposite cap channel line. If price is already near one of these exit signals, there is no point in entering a trade.
So you enter a trade either when the macd crosses from below to above or from above to below the 0 line or you look for the seven EMA to cross from below the lower red 25 EMA to above it, or from above the upper red EMA to below it.
The green 7 EMA can also come down from above the upper red and bounce back up, which is another good buy signal. The opposite is true for sell signals.
Ideally, your buy signal will come when price is toward the bottom of the cap channel. And your sell signals will come when price is toward the top of the cap channel. Even better is when the 200 EMA is outside of the cap channel.
If I am trading based on the m1 or M5 or H1 or H4 chart, I do look to the D1 and w 1 charts so that if I am stuck in what looks like a loser on the short time frames I have confidence that there’s a high probability that I can wait it out and still make a good profit.
The EMA cross is a superior signal to the macd signal.
Use your discretion if you’re going to use a stop loss. If you’re using a time frame below the D1 you have to know that you will need a big stop loss in case of any high impact news. If you are trading after the New York market has been open for an hour, you could have an extremely tight stop loss. Your stop loss preference will determine if you are okay with taking a few very small losses in exchange for a big winner with very small risk. Or it will determine if you would rather just take advantage of the high probability that on the longer time frame you will win .
