82# Ema's and MACD Trading System

Up Trend

− Price is above both EMA50 and EMA200

− EMA50 just crossed EMA200, and is currently above 

EMA 200.

− MACD value is positive.

Down Trend

− Price is below both EMA50 and EMA200

− EMA50 just crossed EMA200, and is currently below

EMA200.

− MACD value is negative.

Retracements

Even when trending prices to move in waves. They move with the trend, then retrace slightly, and then continues to move with the trend.

MACD Indicator and

Retracements

Entering a Trade

Trend Determination

− Price is below both EMA50 and EMA200

− EMA50 just crossed EMA200, and is currently below

EMA200.

− MACD value is negative.

Entry Signal - Retracement

− When price rises, it makes MACD value increase and MACD

value eventually becomes positive.

− The trigger is when MACD value turns from positive back

to negative.

Place the Order

− When that happens, we enter at market price with two

lots.

Entry Example - Trend

We are in a down trend.

− Price is below both EMA50 and EMA200

− EMA50 just crossed EMA200, and is currently below

EMA200.

− MACD value is negative.

Entry Signal

− When price rises, it makes MACD value increase and MACD

value eventually becomes positive.

− The trigger is when MACD value turns from positive back

to negative.