Trading Guide
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  • 🧠 STRATEGIES
    • What Are Trading Strategies
    • The Outside Bar trading method
    • Two Stochastics
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    • Envelopes + MACD
    • Parabolic SAR + MACD
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    • The Sidus Approach
    • The Stochastic + Trend Trading Method
    • CDMA
    • BullDozer
    • ZigZag + MA + ZigZag
    • Fractals + OsMA
    • The Puria Method
    • The MACD Profitunity
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  • ⚖️ RISK MANAGEMENT
    • Intro
    • Position sizing
    • Stop-Loss Orders
    • Risk-Reward Ratio
    • Diversification
    • Hedging
    • Trading Psychology
    • 📝 Risk Management Calculator
  • 💡 TIPS
    • 25 Trading Tips
  • ⚠️ INFO
    • Disclaimer
    • Content Used
  • 🔗 LINKS
    • Useful Links
    • 🔒 Algorithmic Trading: How to automate your strategies with trading bots
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  1. 🧠 STRATEGIES

CDMA

PreviousThe Stochastic + Trend Trading MethodNextBullDozer

Last updated 4 months ago

Indicators:

  • (30, 0, close)

  • (25, 50, 9, close) with SSMA (15, 0, previous indicator’s data)

  • (6, 12, 1, close)

Key conditions:

The timeframe must be H1 or higher. The first signal should come from the fast MACD. A trailing stop between 10-20 points is applied. The overall trend is determined by the SSMA (30).

BUY conditions (all conditions must be met):

  • Fast MACD is above the zero line

  • Slow MACD signal line crosses its balance line from below to above, preferably above zero

SELL conditions (all conditions must be met):

  • Fast MACD is below the zero line

  • Slow MACD line crosses the balance line from above to below, preferably in the negative zone

Exit criteria: exit the trade when a Stop Loss is triggered or a reverse signal appears.

Exercise:

Open a chart with the H1 timeframe or higher. Apply the SSMA indicator with settings (30, 0, close). Add the MACD indicator with settings (25, 50, 9, close) and combine it with SSMA (15, 0, previous indicator’s data). Then, add a second MACD indicator with settings (6, 12, 1, close).

Look for a BUY signal when the fast MACD is above zero and the slow MACD signal line crosses its balance line upwards, preferably above zero. Enter a long position and set a trailing stop between 10-20 points. Exit the trade when a Stop Loss is hit or a reverse SELL signal appears.

Repeat the process for a SELL signal when the fast MACD is below zero and the slow MACD line crosses its balance line downwards, preferably below zero.

SSMA
MACD
MACD