MACD Heiken Ashi Trading System – Profitable Trading Strategy Using MACD (12 26 9) and Heiken Ashi MA (20). The moving average convergence divergence calculation is a lagging indicator used to follow trends.
What I personally like about the MACD is the indicator has a built-in filter for trade signals. This filter is easy to apply to any chart.
If the MACD is below the zero line, do not open any long positions when the trigger line crosses above the MACD line.
Conversely, if the MACD is above the zer0 line, do not open any short positions when the trigger crosses below the MACD line.
- Time Frame: H1 or higher
- Currency Pairs: GBPUSD and EURUSD
- MACD Color Hist Alert
- Commodity Channel Index
- heiken Ashi MA
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- Use a demo account or a small live account first to practice this trading system
- MACD Histogram blue color
- MACD fast line (blue) > MACD slow line (yellow)
- Commodity Channel Index line above 50 level
- Heiken Ashi MA blue color
- MACD Histogram red color
- MACD fast line (blue) < MACD slow line (yellow)
- Commodity Channel Index line below -50 level
- Heiken Ashi MA red color
Is MACD appropriate for Day Trading?
The MACD is based on whatever time frame you are trading. Therefore, it’s effectiveness or lack thereof is has nothing to do with intraday trading versus daily charts.
The one thing you should be concerned about is the level of volatility a currency pair. The greater the volatility, the less likely the MACD or any other indicator for that matter will accurately forecast price movement.