This was posted by Golfer on the Forex Factory 4 Hour MACD Thread
The post summarize the price movement rules based on 4 Hour MACD Strategy
1. Your focus should be
around the price movement in relations to:
1.1 MA, trendlines, support and resistance levels and big numbers.
1.1 MA, trendlines, support and resistance levels and big numbers.
1.2 Then look for the MACD to confirm
signals.
2. Homework on price
movement should have been done before looking at the MACD signal
3. Don’t
take every MACD signal.
4. Don’t jump around
ten pairs.
4.1 Stay with the minimum
and keep track of their price movement (as stipulated in Rule 9-11)
5. Look at market
emotions – candle formation at critical points on the chart will show emotions
in the market
6. Wait for playing
ground to be removed so that the market can get rhythm and definite direction
7. Go
with the rhythm and trend of the pair.
8. Counter
trend trade only when:
8.1 Near major Trend, Resistance and Support
lines
8.2 RR is 1:1 or better
8.3 Towards the 21MA as profit target
9. When price break
through the 89MA, it tends to move back to 21MA and then it moves on in that
direction.
10. When
price breaks through the 200SMA, it moves back to it before moving on.
11. When price breaks back
through the 21MA it comes back to 21MA and then move on to the 89MA
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