I am not using the 50 and 100 ema. Not to say they don’t work. See attached PDF file to first post for modifications to method. Let me know if any questions.
Using Daily to identify trend and hourly to enter trades.
Hello,
Can you please send me the EA that you have made for this system, I havent posted on here before and it will not let me email you. Thanks
Sorry I don’t have an EA for this. To be honest I have revised this method and I am using The Daily MACD to determine trend direction rather than the 50/100 EMA cross. If the Daily MACD is above the zero line then I look for long trades. I look at the hourly MACD to enter trades. I also use Bollinger Bands to help with entry.
So if MACD above zero then I wait for the hourly MACD to cross down below the zero (opposite the daily MACD). I want to see the hourly candles riding the hourly lower Bollinger band down then I want to see them come off the lower band. Then I want to see the hourly MACD color from red to green ( I now use a coloring MACD). I then place a pending order for 5-10 pips above the high of the candle that corresponds to the green MACD histogram bar. SL is at the most recent swing low. I place 2 to 3 entries so I can scale out and maximized profits. I plan to post a PDF soon detailing this method.
Hello there,
I just wanted to thank you for sharing honest information and hard work.
When can we get the PDF of your latest modification.
Thanks,
I will work on PDF later but will post rules here
Indicators: Colored MACD 12,26,1. Bollinger bands standard setting.
Time frames: Daily and 1 hour.
Daily MACD above zero look for longs.
Daily MACD below zero look for shorts.
Trades entered on hourly chart.
Example: Daily MACD above zero. Move to hourly chart. Wait for hourly MACD to dip below zero and head back up. I wait for hourly MACD to turn from red to green. Also need to see the hourly candles at least touching the lower Bollinger Band but it is better to see the candles riding the lower Bollinger Band. Wait for the candles to come off the lower Bollinger Band along with the MACD turning red to green. When you see this set a pending order for 5 to 10 pips above the candle that corresponded with the MACD histogram bar turning green. Set SL below the last swing low.
The posted chart shows the hourly USDCHF. Daily MACD is above zero. The hourly MACDs dipped below zero and the candles were pushing the lower bollinger bands. The 2 green vertical lines show 2 possible setup areas where the MACDs turned red to green and where one should have put a pending order at the high of the candle corresponding to the MACD histogram bar that turned green. SL was set 10 to 20 pips below the swing low. You can see you would have made nice pips on this trade. I took this one. I also post on forex factory "trading MACDs and bollinger bands.
Sorry about problems with attachments in previous posts. The previous post contains an example with rules and chart example. I also post alot on forex factory with charts so check it out. I will try to post more live trades and I will also post setups that I don’t take so those who are trading using this method can benefit. Good luck.
OK here is the updated PDF. It does not have charts. I will post trades I have taken and setups I don’t take in the future. Currently nothing on the pairs I trade. You can go to forex factory and look up my thread “trading using MACD and Bollinger Bands”. You will find quite a few charts and trades I have taken previously. Some trades not based on updated PDF so read the whole thread. It’s not that long.
Thank you. I have read the thread already. I appreciate your help.
Daily MACD above zero. Hourly MACD dipped below the zero and on the way back up as indicated by MACDs turning green. I entered on a slight retracement of the big hourly candle.
Stopped out of previous trade. Here is next trade on same pair.
Remember we trade in the direction of the daily MACD which is currently above zero. Then we wait for the hourly MACD to go below the zero which it is and for the hourly candles to push the bollinger bands and come off. So far so good. Now we need the MACD to color green which it is. Now set your pending orders. I set mine a little higher than the rules say as this counter trend is fairly strong right now.
I am working on a counter trend strategy to compliment this strategy but so far I think the risk outweights any benefits so for now I will stick with trend trades.
daily macd on euro/us is below zero but the color is green that means its going upward.so what do we do nowon the hourly macd,should we go long on lower bb or go short on upper bb?:rolleyes:
PDF attachement is clear on this but I don’t mind helping you out. When the Daily MACD is below zero we are only looking for short trades. Doesn’t matter whether or not daily MACD is red or green. Since daily MACD is below zero we are looking only for short trades. On the hourly chart the method says we wait for the hourly MACD to cross above zero, to push the upper BBands and them come off with corresponding hourly MACD turning red. Place a PO 10 pips below the hourly candle that turned red with the corresponding red MACD histogram bar. Set you SL above the last swing.
I have been reviewing the method and finding that it may be better to wait for the hourly MACD to cross the zero before taking a trade as I have been getting a lot of stop outs lately. Also I was testing using the MA of the MACD which give earlier signals on the hourly chart but I don’t have time to explain right now. Maybe later. Good luck!
Thanks for giving me this method. very simple and make my life easier in forex world…
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I am having trouble on my charting software setting the last value of the MACD system if I set 26,12,1 it says that the final value has to be higher than 1 will this have a great affect on the system??
I need Colored MACD please post here i want it.
Well again I have tweaked the method. So here is my latest edition.
Indicators:
MACD 12, 26, 9.
EMAs 50 and 100.
Moving Average of Oscillator (OsMA)
Time frame:
1 Hour
Pairs:
I will trade mostly EURUSD, GBPUSD, AUDUSD, USDCHF, USDCAD.
Many of you know my thread “trading using MACD and Bollinger Bands” in the trading discussion area. This method is derived from my experience trading the MACD and some of my trades are documented there. The purpose of that thread was to develop a method of trading using MACDs as a signal so when you read that thread you will notice that the method evolved. Now I believe I have a method that works for me. So here we go.
The initial set-up occurs with a 50/100 EMA cross. After the cross you wait for the MACD to cross the zero line in the opposite direction of the EMA cross. Now wait for the MACD to come back and cross in the direction of the EMA cross. Now a little discretion occurs with the actual entry. I look to the left and study the swing that corresponded with the MACD dip or spike. I identify a significant area of support or resistance that needs to be exceeded to trigger a pending order. If that sounds confusing I hope to clarify with some chart examples.
Now you are wondering what the moving average of oscillator is for? This indicator is not essential to the method but it is more reactive than the MACD so it will often give earlier signals than the MACD. The downside is that with more signals many will be false so beware.
I do not use the colored MACD any more as it gave too many false signals. It does not matter if the MACD is set to 12, 26, 9 or 12, 26, 1.
I will post a chart or two to follow.
This is audusd.
Note the 50 ema is above the 100 ema so we are looking for longs. Now note the MACD areas where it crossed below zero then started on the way back up. Note the OsMA in these same areas. The OsMA often crosses back up earlier than the MACD providing an entry opportunity. At this point I enter based on two method. One is to draw a line from a previous signficant high. Could be the close of the previous 1 hour candle or perhaps a previous minor swing. Once it exceeds that level I enter or a pending order is triggered. Another way is to move to the 5 minute chart and identify previous support and resistance. In this case since we are looking for longs we would wait for a resistance level to be broken.
Again this is audusd. This is a trade I took. All criteria are met. The OsMA crossed up earlier than the MACD. I drew a line across from that minor swing high. This is where I took the trade. One could have taken it on the lower red TL also but I was not watching it at that time.
newbie here.
How can I set up manually a green and red MACD that you show on one of the screen prints???
Kuam
iamkuam / at / hot mail / dot / com