MACD and inside bar - trading system on patterns (gain 447 points)
Trading system on patterns "MACD and inside bar" uses trend movement in combination with signals oscillator MACD.
Work, of course, on the MetaTrader 4 with a reliable Forex broker .
Position according to the strategy trade patterns "MACD and inside bar" always open with the express price movement (trend), and never in the flat, even if we see "inside the candle."
Trend is determined by higher lows (uptrend) or lower highs (downtrend) candles, as well as in the direction of moving averages (more precisely, MA and histogram bars) in the MACD oscillator .
Traded currency pair - any which like or which are constantly running, the time interval - also your choice.
Define the term "inner candle (bar)", she Inside Candle (Bar). So, "a candle inside" - is a candle that has a lower high (High) and a higher low (Low), than the previous candle on the chart. This pattern can be interpreted as a short break in the foreign exchange market, then there is the moment when players (market) are in a state of uncertainty of future price movements. After breaking the "inner spark" price movement usually quite volatile.
Sequence of actions when buying trading system according to patterns "MACD and inside bar":
1. The graph we see formed "inner candle."
2. Removals and oscillator MACD histogram bars are located above its zero (buy zone).
3. So expect upward breakdown, so you need to set Buy Stop - pending order to buy at the maximum (High) "inner spark" doplyusovav spread size.
4. Stop Loss set slightly below the low (Low) "inner spark".
Out of position is possible by triggering the safety Stop Loss, Trailing Stop tripping or receive the return signal from the oscillator MACD. The last option is most preferred and profitable.
For positions on the trading strategies "MACD and inside bar" pending sell order (Sell Stop) set below the low (Low) "inner spark" + spread, and Stop Loss - at maximum (High) "inner spark".
Example MACD strategy and in-house bar. EURUSD, H1.
At 16:00 08.09.2011 see form the "inner candle." Removals and oscillator MACD histogram bars located in the area of sales - below its zero level. So, set a pending sell order Sell Stop at 1,3962 (Low "inner spark"). Stop Loss set at High "inner spark" (1.4023).
After 2 hours, pending order is triggered, the price goes down. At the peak of the low value of the oscillator, the MACD can get out of position (Stop Loss tightens the distance from 30-50 points, depending on the volatility of the chosen currency pair). Closing position produce at 1.3515. Resulting profit was 447 points. Given that we have worked on the hourly chart, the position remains open more than one day, but the gains were substantial.
2 more examples of "internal candles" - points A and B on the chart. Positions also open for sale. Profits will be small, but the position will be closed before releasing the deposit for the subsequent trade.
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