MACD Histogram Strategy - The Moving Average Convergence Divergence Histogram can assist with taking trades in the direction of the trend. Created by Thomas Aspray in 1986, the MACD Histogram is a visual indicator of the difference between the MACD line and the Signal line, which is a default 9 period ema of the MACD line. This is a very easy to follow method of day trading stocks that are in a clearly identified trend.
It can be extremely difficult for new traders to finalize a trading strategy for trading the Forex market. Once a trendline is drawn, and a trading bias has been established traders will begin looking for areas to enter new positions. DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.Learn forex trading with a free practice account and trading charts from FXCM. Today we are going to review the basics of a simple MACD strategy, based on finding the trend then utilizing an indicator for execution.

Since we have identified the EURCAD in an uptrend traders will look to buy when the MACD when momentum returns to the underlying currency pair. This occurs whenthe Red MACD line to crossover the Blue Signal line, prior to executing their orders. This simple day trading strategy managed to catch the start of this bear run for a nice profit. When market price cross above alligator indicator then we need to get confirmation from MACD.
This bearish divergence set an excellent context for short trades.Here, prices fell and MACD moved below both the zero line and its signal line. A sell stop order was placed at the lower Bollinger Band to anticipate a short trade.After a downtrend was confirmed by the MACD, a bullish outside bar formed, but had little follow-through. When market price crosses below alligator indicator, then we need to get confirmation from MACD.

At the same time, MACD confirmed a downtrend for us and we entered short at the lower Bollinger Band. I have tried it on different time frames and found this day trading strategy to be surprisingly robust, like what Markus Heitkoetter claimed in his article.By demanding that the MACD rises not only above its signal line, but also its zero line, this day trading strategy is able to locate short-lived intraday trends.
It’s free for simulation trading, and you can get a demo account from any NinjaTrader compatible broker for data. Cancel reply Get Updates via EmailSubscribe for TSR updates and get a free eBook - “Day Trading with the Anti-Climax Pattern”.

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