29#MACD Retracement Trading System

Time Frame: 1H or Higher

Pairs:all

Indicators:

5 and 10 SMA

MACD (12,26,9)

 

Long Entry

 

  1. MACD should be below 0 and MACD Histogram should be moving away (retreating) from MACD Signal line (red)

    The above rule are the main ones which gives you the earliest warning about a possible trade forming. However, do not take any trade now itself because there comes the other rules

    2. Price should be trying to go UP by now, but it normally BOUNCES off the SMA20 (blue)... we should look for this bounce
    3. The last rule is, after the bounce price should normally go little below the SMA5(red) and a bar might close below it.

 

MACD Retracement Buy
MACD Retracement Buy
MACD Retracement Sell
MACD Retracement Sell

Short Entry:

  1. MACD should be ABOVE 0 and MACD Histogram should be moving away (retreating) from MACD Signal line (red)
    2. Price should be trying to go DOWN by now, but it normally BOUNCES off the SMA20 (yellow)... we should look for this bounce
    3. The last rule is, after the bounce price should normally go little below the SMA5(blue) and a bar might close below it.

 

Stop lossis best placed a few pips (5-10) below or above the most recent swing before your trade entry. For a buy, it would be the most recent LOW before your entry and for a sell it would be the most recent HIGH from your entry. This system will keep your stoploss very close to your entries as we tend to enter earliest into the trades, therefore we risk little and we aim a 2x or more profit from what we risked.

The take profitshould be reasonable, you can use the next resistance as takeprofit level for a buy and the next support level for a sell. Breakeven your trade as soon as you can. After than you can ride the trade and see how much you can make from it. The trades taken with this system will usually give you a lot of pips.

 

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Retracement Forex Strategies