A lot of questions from traders lately about the most simple forex trading techniques seem to reflect the frustrations of traders who experience many failures even to feel the bitter pill Margin Call.
In fact this simple word has many definitions depending on which glasses define it. The easy definition for a novice trader is certainly different from the easy definition of a trader who already has a lot of experience and hours of flying in the world of forex trading. This is why we decided to introduce you to one of the most simple forex trading techniques that is by using simple MACD indicators to read market movements and open Buy or Sell positions.
WHAT IS MACD?
Before discussing more about simple trading techniques using MACD, it helps us understand in advance what is MACD.
MACD itself stands for Moving Average Convergence / Divergence (average convergence / difference movement). Where this indicator was created in the 1960s by Gerald Appel which aims to consider the relationship between the long-term and short-term MA (Moving Average) line.
The MACD then shows a much slower and faster EMA (Exponential Moving Average) difference from the closing price. MACD is then developed into one of the most popular and most popular forex analysis indicators. One of the advantages MACD that many preferred by the trader is, quite rare false signals in forex trading because of its smooth movement. In oversold or overbought condition, MACD does not show any signal.
2 BASIC MACD PRINCIPLES
MACD forms the highest peak to reach the lowest valley, and vice versa
Three possibilities are possible in MACD price movements
MACD will match the current price
MACD is moving in the opposite direction with the price, but then it will move in the direction of MACD, this is Divergent Covergent
The price will continue to be in sideway condition until MACD expires
SIMPLE AND EASY TRADING TECHNIQUES USING MACD
As we have said before, each trader has a simple definition of reading a MACD indicator. There are utilizing the intersection of MACD line signal and main to determine the position of Buy or Sell. There is also a later use of the divergent MACD conditions in determining the position of Buy or Sell.
If you are still a layman in using this MACD, we will provide the easiest tips and ways so you can easily know when a trend is formed to then open the right position using a simple indicator MACD.
Usually traders who still lay in using this indicator in no way change anything in installing Metacrader MACD indicator as shown below.
But this time we will provide a simple trading technique using MACD, to do so you can change a little MACD settings from the standard using the settings we use so that you can use our simple trading techniques, Fast SMA = 14, Slow EMA = 20, And MACD SMA = 1, as we demonstrated in the picture below.
On this occasion we will use EUR / AUD pair with H1 timeframe. Do not be surprised and surprised if you find a different MACD than you normally use, like the one in the picture below.
This trading technique is actually very simple, you just see and watch both when MACD wave passes through the middle line of zero level. At the time of crossing this is the right time to open position buy or sell.
Do not forget to use stop loss and take profit, where we suggest you use take profit of 10-20 pips or will be much better if you can condition the chart that is currently happening.
This technique is very simple is not it? But if you want to try it should try first on a demo account before you do it right in the real account in order to avoid the harmful losses.
In fact this simple word has many definitions depending on which glasses define it. The easy definition for a novice trader is certainly different from the easy definition of a trader who already has a lot of experience and hours of flying in the world of forex trading. This is why we decided to introduce you to one of the most simple forex trading techniques that is by using simple MACD indicators to read market movements and open Buy or Sell positions.
WHAT IS MACD?
Before discussing more about simple trading techniques using MACD, it helps us understand in advance what is MACD.
MACD itself stands for Moving Average Convergence / Divergence (average convergence / difference movement). Where this indicator was created in the 1960s by Gerald Appel which aims to consider the relationship between the long-term and short-term MA (Moving Average) line.
The MACD then shows a much slower and faster EMA (Exponential Moving Average) difference from the closing price. MACD is then developed into one of the most popular and most popular forex analysis indicators. One of the advantages MACD that many preferred by the trader is, quite rare false signals in forex trading because of its smooth movement. In oversold or overbought condition, MACD does not show any signal.
2 BASIC MACD PRINCIPLES
MACD forms the highest peak to reach the lowest valley, and vice versa
Three possibilities are possible in MACD price movements
MACD will match the current price
MACD is moving in the opposite direction with the price, but then it will move in the direction of MACD, this is Divergent Covergent
The price will continue to be in sideway condition until MACD expires
SIMPLE AND EASY TRADING TECHNIQUES USING MACD
As we have said before, each trader has a simple definition of reading a MACD indicator. There are utilizing the intersection of MACD line signal and main to determine the position of Buy or Sell. There is also a later use of the divergent MACD conditions in determining the position of Buy or Sell.
If you are still a layman in using this MACD, we will provide the easiest tips and ways so you can easily know when a trend is formed to then open the right position using a simple indicator MACD.
Usually traders who still lay in using this indicator in no way change anything in installing Metacrader MACD indicator as shown below.
But this time we will provide a simple trading technique using MACD, to do so you can change a little MACD settings from the standard using the settings we use so that you can use our simple trading techniques, Fast SMA = 14, Slow EMA = 20, And MACD SMA = 1, as we demonstrated in the picture below.
On this occasion we will use EUR / AUD pair with H1 timeframe. Do not be surprised and surprised if you find a different MACD than you normally use, like the one in the picture below.
This trading technique is actually very simple, you just see and watch both when MACD wave passes through the middle line of zero level. At the time of crossing this is the right time to open position buy or sell.
Do not forget to use stop loss and take profit, where we suggest you use take profit of 10-20 pips or will be much better if you can condition the chart that is currently happening.
This technique is very simple is not it? But if you want to try it should try first on a demo account before you do it right in the real account in order to avoid the harmful losses.
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