ZEUS Bullish MACD Setup - High Accuracy of Winning TradesOur MACD Setup is created to reveal winning entry points for a trade with high accuracy.
In our MACD Setup we combine multiple conditions to recognize only strong entry points.
Multiple factors need to be met in confluence:
1. Recognize the Trend = Bullish / Bearish Trend (50 EMA is Above / Below 200 EMA)
2. There is a MACD Cross = Bullish / Bearish MACD Cross (MACD Cross is Below / Above Zero Horizontal Line)
3. Avoid False Signals in a Sideways Markets = MACD Cross far from horizontal zero “0” line
4. Filter only Strong Trend Situations = Candle Close above/below 200 EMA
5. Avoid Extreme Values in RSI = check if there is way to go before we get oversold/overbought
6. Our Algorithm Filters Signals in Side Trend and Low Volume Markets
Let´s explain the conditions step by step
1. Recognize the Trend
Exponential Moving Average (EMA) is one of the most effective trend identification indicator. Traders like it because of it its simplicity.
EMA is usually used in combination between 200 days (as a slow indicator) and 50 days (as fast indicator of the trend).
Bullish Trend = EMA 50 is Above EMA 200
Bearish Trend = EMA 50 is Below EMA 200
2. There is a MACD Cross
After we recognized the Trend (Bullish Trend in our case) we would like to trade with the trend so we are looking for Bullish MACD Cross.
Bullish MACD Cross is Below Zero Horizontal Line
3. Avoid False Signals in a Sideways Markets
So we found Bullish MACD Cross and now we want to be sure that the Cross far away from the Zero Horizontal Line.
Our algorithm filters crosses and shows only signals with decent distance form Zero Horizontal Line.
4. Filter only Strong Trend Situations
Once we have met the first three criteria (Bullish Trend and Bullish MACD Cross far from Zero Horizontal Line) we need confirmation that the market is still strong and is moving forward in an uptrend.
So we look at price action and there need to be Candle Close Above EMA 200 . Closing about EMA 200 indicates continuation of the trend.
5. Avoid Extreme Values in RSI
The other condition is based on RSI and we are looking only for situations where RSI is not overheated so there is a way for trend continuations.
In our case RSI was in the middle values so we can expect market to continue its uptrend.
6. Our Algorithm Filters Signals in Side Trend and Low Volume Markets
We have developed our own Algorithm which filters signals in low volume markets and side trend.
