This strategy is based on the use of the indicators MACD and Average Directional Movement Index.
Instruments: EUR/USD, AUD/USD, GBP/USD.
Time frame: D1
- MACD (3,9,16).
- ADX (16).
Conditions for opening long positions:
MACD histogram should be in the positive zone (a buy signal). The line +Di should be above the line –Di. If the line +Di is below the line –Di and, at the same time, MACD indicator does not give a buy signal, you shall not make any steps trying to open a position, rather wait until the main condition is fulfilled.
Conditions for opening short positions:
MACD histogram should be in the negative zone (a sell signal). The line –Di should be above the line +Di. If the line –Di is below the line +Di, and at the same time, MACD indicator gives a sell signal, you should not open a position, better wait until the line –Di will be above the line +Di.
Use “Trailing Stop” option, as it will help to lock in the maximum possible profit. The recommended value of Trailing Stop is 40-70 points.