153# MACD Forex Trading System
MACD and Ema Channel
Submit by Murcu 06/03/2014
MACD forex trading System is strategy trend following based on the MACD indicator and on the Ema channel
Time frame: any.
Currency pairs: any
We only BUY when the MACD Bars are GREEN.
We only SELL when the MACD Bars are RED.
The best time to start looking for a signal is when the MACD has just crossed the ‘0’ line.
In other words…
It’s best to look for a SELL when the MACD Bars have just gone from green to red.
It’s best to look for a BUY when the MACD Bars have just gone from red to green.
See examples ( below).
Now, remember what I said before, rules are higher probability (but don’t occur so often).
Rules happen more often but are not as effective (at least until you get some
experience with the system).
So, for this part of the MACD rule, it doesn’t matter if the MACD has just crossed the ‘0’ line; as long as the bars are red for a short (or green for a long) we can be prepared to take a trade.
On the charts there is a 50-EMA channel; this channel is made from the 50-EMA of the HIGHS and the 50-EMA channel of the LOWs.
We only look to BUY when the 15-EMA is ABOVE the 50-EMA Channel.
We only look to SELL when the 15-EMA is BELOW the 50-EMA Channel.
Many times there are good signals when the 15-EMA is just inside the 50-EMA Channel.
Once you have some experience, you will start to recognise when it’s okay to take trades when the 15-EMA is inside the 50-EMA Channel.
Where to place your stoploss will be very obvious when you enter a trade.
You basically place it behind the most recent low (or high) made before the arrow occurred.