Envelopes + MACD

Indicators:

• Envelopes (21, 0.07)

• MACD (12, 26, 9)

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.