“Moving Average MACD Combo” Trading System



Trading setup

  • Trade on 30 minutes chart

  • 100 SMA applied to the close on 30 min chart

  • 50 SMA applied to the close on 30 min chart

  • MACD (12,26,9) applied to the close on 30 min chart



Trading Rules

Entry Rules
 

Long entry rules:

  • If the price is above the 50 and 100 SMA on 30-min chart. Then it’s a buy signal.

  • We enter when MACD histogram crosses zero line and become positive.

  • If MACD histograms already in the positive territory and making “lower highs”, then we’ll wait for the histograms to make “higher highs” to enter the market.  



Short entry rules:

  • If the price is below the 50 and 100 SMA on 30-min chart. Then it’s a sell signal.

  • We enter when MACD histogram crosses zero line and become negative.

  • If MACD histograms already in the negative territory and making “higher lows”, then we’ll wait for the histograms to make “lower lows” to enter the market. 



Exit Rule

  • We exit when MACD histograms making lower highs (long trade) or higher lows (short trade).




Stop Loss 

  • Set the stop beyond the 50 SMA.  

Take Profit

  • We take profit according to our exit rule. 


    Long Trade Example:




    Short Trade Example:





    You must test this system thoroughly through back testing and by trading it live on a demo account for at least 2 months. After two months of testing if you find it profitable, only then use it on a real account. 

    Tips:


    *THE MARKET PAYS YOU TO BE DISCIPLINED. 


    *Never risk more than 2% of your account on a single trade. 


    *No system works during news releases. So watch out for the news. I use investing.com‘s economic calendar for the news, which is the best one I know. 


    *Every system works most during London and US session. 


    *If you wanna learn Forex Trading properly, then you must read babypips.com’s school of pipsology completely. And then you must read all the books available in this website. 


    Don’t forget to follow me on twitter @imakm247

    Add me on Facebook @iamakm15 
    Email me anytime – imakm15@gmail.com 


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