Forex Savvy
Learn the most accurate MACD strategy for beginners to make money from trading. Only two indicators are needed: MACD and EMA. Customize settings and follow specific rules for buy and sell entries. Backtest the strategy at least 100 times before trading. Money management and risk management plans are crucial for success in the market.
The Most Accurate MACD Strategy for Beginner Traders
Introduction: Understanding the MACD and EMA Indicators
The MACD (Moving Average Convergence Divergence) and EMA (Exponential Moving Average) are two of the most popular indicators used by traders in the financial markets. They are highly effective in identifying trends and momentum, making them essential tools for technical analysis. In this article, we will discuss the most accurate MACD strategy that beginner traders can use.
Adding the MACD and EMA Indicators to The Chart
To use this strategy, we only need to add two indicators to the chart – the MACD and EMA. Adding them to the chart is pretty easy. To do this, go to the Trading View indicator tab and search for MACD. Once you’ve found it, click on Moving Average Conversion Diversions. Then, search for EMA and click on Moving Average Exponential.
Changing the Settings of the MACD and EMA Indicators
For this strategy, we need to change the settings of the MACD and EMA indicators. To change the setting of the EMA, click on the EMA setting icon, then in the input section, change the length to 200. Then, click on the style section and make the line thicker. For the MACD, we don’t need to change anything, but you can change it in the style section to make it more visible.
The Rules for Buy and Sell Entry Using the MACD and EMA Indicators
For this strategy, we need to follow specific rules for buy and sell entry using the MACD and EMA indicators. For buy entry, the first rule is that the price should be above 200 EMA. The second rule is that the MACD indicator’s blue line should cross above the red line, and the crossover must happen below the zero lines. The third rule is that the MACD histogram must be green. When these three rules match, we can open a buy entry on the chart.
For stop loss, we use the previous swing low, and for take profit, we set two times of risk. For sell entry, the first rule is that the price must be below 200 EMA. The second rule is that the MACD indicator’s blue line closes below the red line, and the crossover must happen above the zero lines. The third rule is that the MACD histogram must be red. When these three rules match, we can open a sell entry on the chart.
For stop loss, we use the previous swing high, and for take profit, we set two times of risk.
The Importance of Backtesting and Money Management
Before making live trades in the market, it is crucial to backtest the strategy at least 100 times. Trading is a probability game, and by backtesting, we can check the probability of the strategy and gain confidence in the strategy. By testing this strategy on our own, we will gain the confidence to trade with real money.
It is also essential to remember that to be successful in the trading business, we must strictly follow our money management and risk management plan. Without this, we cannot be successful in this market.
Conclusion: Subscribe and Hit the Like Button
In conclusion, the MACD and EMA indicators are highly effective tools for identifying trends and momentum in the financial markets. By following the rules outlined in this article, beginner traders can use the most accurate MACD strategy to make money from trading.
We emphasize the importance of backtesting and following strict money and risk management plans. We encourage you to subscribe to this channel to see more informative videos like this one. If you found this helpful, please hit the like button. Thank you for watching!
