Envelopes + MACD
Indicators:
Key conditions:
The strategy is applied on timeframes of M5 or higher. A signal is ignored if the signal candle forms in the middle of the MACD histogram. Pending orders are placed as follows: for BUY trades, set the order 3 to 5 points below the low of the signal candle; for SELL trades, set it 3 to 5 points above the high of the signal candle. Stop Loss is set 4 to 5 points above or below the nearest local extremum. Take Profit is set at 50 to 100 points, with trailing stops adjusted in 20-point steps.
BUY conditions (all conditions must be met):
The price breaks the upper line of the Envelopes from below and closes with a candle body entirely above this line.
The MACD histogram is above the zero line.
SELL conditions (all conditions must be met):
The price breaks the lower line of the Envelopes from above and closes with a candle body entirely below this line.
The MACD histogram is below the zero line.
Exit criteria: Exit the trade when the Stop Loss or Take Profit is reached, or when a reverse signal appears.
Exercise:
Open a chart with a timeframe of M5 or higher. Apply the Envelopes indicator with parameters (21, 0.07) and the MACD indicator with settings (12, 26, 9).
For a BUY trade, confirm that the price breaks the upper Envelopes line from below, the candle closes entirely above this line, and the MACD histogram is above the zero line. Place a pending order 3 to 5 points below the low of the signal candle. Set the Stop Loss 4 to 5 points below the nearest local low, and set a Take Profit at 50 to 100 points, using a 20-point trailing stop.
For a SELL trade, confirm that the price breaks the lower Envelopes line from above, the candle closes entirely below this line, and the MACD histogram is below the zero line. Place a pending order 3 to 5 points above the high of the signal candle. Manage the Stop Loss, Take Profit, and trailing stop similarly. Exit trades based on the specified conditions.
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