Monday, April 20, 2009

MACD and Moving averages




This was just to see and get a feeling for the graphs. Let us start to set-up our charts.
Moving Averages: First of all are the moving Averages that we are going to use.
1. 365 Exponential Moving Average (365EMA)
2. 200 Simple Moving Average (200SMA)
3. 89 Simple Moving Average (89SMA)
4. 21 Exponential Moving Average (21EMA)
5. 8 Exponential Moving Average (8EMA)

MACD:

MACD settings at

1. Fast EMA 5
2. Slow EMA 13
3. MACD EMA 1
Horizontal Lines: Three sets of horizontal lines above and below zero should be drawn on the MACD window at levels as well as one on zero
1. Level +0.0015
2. Level +0.0030
3. Level +0.0045
4. Level –0.0015
5. Level –0.0030
6. Level –0.0045

Your Graph should look like this: (Choose your own colour and styles)
The MACD moves in certain patterns that when recognized can be very profitable
trades. Let me show you the very important ones first. By not following every signal
but only the ones that gives high probability trades through certain MACD patterns
serves as a filter. The ones not familiar are not taken. This is the filter.

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