Create your own trading system: entry point # 5
We continue to study with you the simple market entry points.
Today I would like to show you a very easy pattern for making money on the movement of the exchange rate - entry after a price rollback.
Indicators:
MACD 4C with a period of 8, 100.
Timeframe: M15
Currency: EURUSD
The essence of the idea: the search for entry points after the impulse, at the end of the price rollback.
This idea is very simple to understand: you need to wait for a strong impulse up or down, then wait until the end of the price rollback, and enter in the direction of the previous impulse.
Rules for entry into position:
We buy if:
MACD 4C was green for more than 9 bars (impulse up);
MACD 4C draws red histograms of more than 6 bars (case 1);
After that we draw a resistance line at closing prices (see line chart).
We enter into purchases on the breakdown of the resistance line (Case 2).
We sell if:
MACD 4C was red for more than 9 bars (impulse down);
MACD 4C draws green histograms greater than 6 bars (case 1);
After this, we draw a support line at closing prices (see line chart);
We enter sales on the breakdown of the support line (Case 2).
Exit position:
The exit from the transaction can be at a fixed profit, or use a trailing stop.
Today I would like to show you a very easy pattern for making money on the movement of the exchange rate - entry after a price rollback.
Indicators:
MACD 4C with a period of 8, 100.
Timeframe: M15
Currency: EURUSD
The essence of the idea: the search for entry points after the impulse, at the end of the price rollback.
This idea is very simple to understand: you need to wait for a strong impulse up or down, then wait until the end of the price rollback, and enter in the direction of the previous impulse.
Rules for entry into position:
We buy if:
MACD 4C was green for more than 9 bars (impulse up);
MACD 4C draws red histograms of more than 6 bars (case 1);
After that we draw a resistance line at closing prices (see line chart).
We enter into purchases on the breakdown of the resistance line (Case 2).
We sell if:
MACD 4C was red for more than 9 bars (impulse down);
MACD 4C draws green histograms greater than 6 bars (case 1);
After this, we draw a support line at closing prices (see line chart);
We enter sales on the breakdown of the support line (Case 2).
Exit position:
The exit from the transaction can be at a fixed profit, or use a trailing stop.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.