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Real MACD & RSI Trading System: How to Use the MACD Indicator Correctly

High accuracy “Real MACD & RSI Trading System” – MACD is an acronym for Moving Average Convergence Divergence. This tool is used to identify moving averages that are indicating a new trend, whether it’s bullish or bearish. After all, our top priority in trading is being able to find a trend, because that is where the most money is made.

MACD Moving Average Crossovers

The primary method of interpreting the MACD is with moving average crossovers.

  • MACD Potential Buy Signal: A potential buy signal is generated when the MACD (blue line) crosses above the MACD Signal Line (red line).
  • MACD Potential Sell Signal: Similarly, when the MACD crosses below the MACD Signal Line a possible sell signal is generated.
MACD Histogram

The MACD Histogram is simply the difference between the MACD line (blue line) and the MACD signal line (red line). The MACD histogram is illustrated in the chart below;

When a currency pair is moving strongly in a direction, the MACD histogram will increase in height. When the MACD histogram does not increase in height or begins to shrink, the market is slowing down and might be warning of a possible reversal.

How to install “Real MACD & RSI Trading System
  • Download “TraderVersity.Com-RealMACDRSISysteme” (Zip/RAR File).
  • Copy mq4 and ex4 files to your Metatrader Directory …/experts/indicators/
  • Copy the “TraderVersity.Com-RealMACDRSISystem.tpl” file (template) to your Metatrader Directory …/templates /
  • Start or restart your Metatrader Client.
  • Select Chart and Timeframe where you want to test your forex system.
  • Right-click on your trading chart and hover on “Template”.
  • Move right to select “TraderVersity.Com-RealMACDRSISystem” trading  system and strategy
  • You will see “Real MACD & RSI Trading System” is available on your Chart

 

BUY Rules

  • Rainbow MA: Price close above the MA lines
  • Real MACD:
    • MACD histogram above level 0 line
    •  The MACD (blue line) crosses above the MACD Signal Line (red line).
  • RSI: Upward and above level 55 line

 

SELL Rules

  • Rainbow MA: Price close below the MA lines
  • Real MACD:
    • MACD histogram below level 0 line
    •  The MACD (blue line) crosses below the MACD Signal Line (red line).
  • RSI: Upward and below level 45 line

 

Trading NOTES

This “Real MACD & RSI Trading System” is lagging but high accuracy trading system.

A lagging trading indicator is something that changes or occurs after a significant shift in a target variable has occurred.

A lagging technical indicator is one that trails the price action of an underlying asset, and traders use it to generate transaction signals or confirm the strength of a given trend.