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Momentum with Stochastic and MACD Trading System is strategy for swing
trading.
Forex Indicators:
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Trading Rules
Buy
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again.
After we've made sure that conditions are met on the MACD
want the two lines to cross each other; and we want the lines to face up.
the oversold zone, we need to wait for the candlestick that created this
condition to close.
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The histogram is
facing up and the
stochastic lines
have crossed
each
other on the
oversold zone,
level 20.
There’s a very
important point I
would like to
add. It refers to a situation
return immediately above this level on the next bar in order for this to
We place the stop loss 1 pip below our base candlestick, which is the
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For Example:
to the breakeven point (that is, I’ll change it to the trade’s opening
price).
For example: If I’ve risked 50 pips my second profit target is 100 pips.
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That's it…
sure that once you master it, you will see the
difference in your bottom
line as well.
Sell
This means that the histogram should be below the zero level, and then
For example:
down.
Now is the moment we should determine our exact entry point. The
moment we see the histogram fall again and the Stochastic reach the
overbought area; we need to wait for the candlestick that created this
condition to close.
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trade.
For example: If I risk 50 pips, my take profit target will be 50 pips. When
the price reaches the first take profit target, I’ll close 80% of this trade.
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After the first part of the trade has been closed, I will move the stop loss
to breakeven point (that is, I’ll change it to the trade’s opening price).
For example: If I’ve risked 50 pips, my second profit target is 100 pips.
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