If the market is in a range like this, the index will give you a lot of false signals. So that’s why if you want to raise the winning rate, I recommend using the most advanced type of strategy, which includes combining MACD with Price Action.
Here’s how this strategy works.
1) The first step is that we need to choose a time frame. For this I spend a period of four hours.
2) Now the next thing you need to do is identify the key level within this time frame. So, as you can see, the price went up a lot and went back so we can draw a resistance line up here.
1) Next step Do you want to wait for the price to approach the same key level again. Now that this has happened, we expect the price to drop. However, just because the price affects the key level does not guarantee that a return will happen because the key levels are magical. Prices can always go through which is why we need to use additional verification.
2) To ensure that there is a real downturn as the price affects this area, where the MACD indicator applies.
Now what most traders will do is actually wait for the MACD crossover down before taking a short position. However, in doing so, be aware that the ground movement has already taken place and you may have entered late.
The secret strategy of Moving Average Convergence Divergence (MACD)
What I was getting was getting the previous entry signal to bring the two frames below. So, I’m currently on a four-hour chart, so let’s bring that closer to our chart.
So, here’s the two-hour chart and all we have to do is wait for the MACD crossover to go down with this new short-term era, so that’s where you want to take the short term. So now let’s go back to the four hour chart and compare the two entry signals.
So now we are back to the four-hour deadline and be aware that if you were to use the crossover from the two-hour deadline you would be entering this trading area here. But if you had been using a crossover for four hours, you would have come in here, and although both of these actions ended up being profitable, the short crossover time still gave us a pre-entry signal.
let’s look at this strategy again.
Here’s an hour’s worth of two hours or more on the left. We see that prices are very good and backward, making this an important support level. Now, as prices return to this level again, we want to ensure that there is a real high momentum as the price affects this area. So again, you want to zoom in on the two frames below. And use them in the index. Now all we need to do is use the MACD to confirm the bullish momentum by waiting for it to fall to the top. Once this has happened you take a long position.
Now let’s go back to the two-hour timeline and implement or exit the strategy. Therefore, with our configuration rules you can set it. At the key level then set your profit goal 1.5 times where you lost. And as you can see. This trade only made a profit. therefore, I have just introduced you to the top winning MACD strategies you can use right now.