The MACD Profitunity
Last updated
Last updated
Indicators:
(34, 89, 9)
(default settings)
Key conditions: the timeframe should be H1 or higher.
BUY conditions (all conditions must be met): a fractal forms a downward pattern and the MACD histogram is above both the signal and center lines. Additionally, the Awesome Oscillator histogram reverses to the green zone.
SELL conditions (all conditions must be met): a fractal forms an upward pattern and the MACD histogram is below both the signal and center lines. Additionally, the Awesome Oscillator histogram reverses to the red zone.
Exit criteria: exit the trade when a reverse fractal forms or when a reversal signal appears on both the Awesome Oscillator and MACD indicators.
Open a chart with a timeframe of at least H1. Apply the MACD indicator with settings (34, 89, 9), the Awesome Oscillator, and the Fractals indicator with default parameters.
Look for a BUY signal where a fractal forms downward, the MACD histogram is above the signal and center lines, and the Awesome Oscillator histogram moves into the green zone. Enter a long position on the next bar and set a stop-loss below the recent swing low. Monitor the trade and exit when a reverse fractal forms or when both the AO and MACD indicators show a reversal signal.
Repeat the process for a SELL signal by identifying an upward fractal, a MACD histogram below the signal and center lines, and the AO histogram reversing to the red zone.
