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Friday, August 10, 2012

Forex Indicator MACD 3-5-3

I’m going to reveal to you how to super-charge your indicators today...
You’re going get a complete, step-by-step guide on how to “hack” your indicators to:
-              Remove “lagging”
-              Find pin-point, laser-targeted entries
-              Boost your trading confidence
Not only that...
But this is something you will be learning (and trading) in less than ten minutes!
(I promise not to give you any “fluff” or “filler” and to keep this as short as I can)

Here’s Where Many Traders Go Wrong With Their Indicators...
Traders will use, say, a 10-period moving average and a 20-period moving average.
They will then wait for this 10MA to cross up above the 20MA – then BUY.
The problem with this is that price can already have made a significant move – like this:

In the chart above then you can see that price has already made a 34-pip move before the MAs have even crossed!
That’s no use to you is it? No. I didn’t think so.
Here’s the deal...
There are many things I can show you, but...
I’m Going To Show You The Simplest Way To “Hack” Your Indicators...
Here’s how it works...
I’m going to show you how to use the MACD indicator as an incredible “trigger” to entering trades.
You will be entering trades at the absolute lowest risk-point - in other words...
You Have A Very Small Stoploss!
The key to using the MACD in this way is forgetting the “Default Settings” of 12, 26 and 9.
We’re interested in bringing that right down to something like 2,6,2 or 3,5,3.
These numbers allow us to “super-charge” the MACD indicator so that it reacts quicker to the market that it would otherwise!
What we’re doing is riding-the-momentum of the market and using the MACD to “slingshot” us into a high-momentum trade.
Not only that... but we’re getting in with a very small stoploss too.
Let’ say we’re using the MACD with 3,5,3 settings - take a look at this chart...
The easiest way to use the 3,5,3 settings for a BUY trade is to wait for the MACD to drop below 0.0 and then rise above it – like this:

This is an example from a couple of days ago - and it’s a good one!
But, you’re smart enough to understand that not every trading day is going to be this good, right? Good.
(A SELL trade would require the MACD to rise above 0.0 and then fall below)
I recommend you use a little trial-and-error, and experimenting with the MACD and the lower-number settings.

--------- by sbudij -------- honest pip -----------


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