MACD INDICATOR STRATEGY
The Moving Average Convergence Divergence (MACD) is a popular technical analysis indicator used by traders and investors to identify potential trends and momentum shifts in the price of an asset. It consists of two moving averages and a histogram. Here's a basic MACD trading strategy:
BUY CONDITION:-
Here, White line is signal line and Red line is base line. When white line crosses red line towards upward then its a bullish confirmation and an opportunity to chance to take buy position.
SELL CONDITION:-
Here, White line is signal line and Red line is base line. Its opposite of buy when white line crosses red line towards downwards then its a sell confirmation and an opportunity to take a sell position.
IMPORTANT RULES FOR THIS STRATEGY:-
1. Never take trade in sideways market
2. Try to combine 1-2 more indicators with this strategy for low risk
3. Risk management is important never use your whole money in a single trade.
4. Never forget to put stop loss in every trade to avoid big losses.
5. trade in 5,15,30 minutes of timeframe to get better results.
6. risk reward ratio should be 2.5/1 in every trade.
Use this strategy for Intraday trading in all markets.
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