FX Trend Tracer

This is a free strategy which a lot of people received by email. I like to talk about this strategy and like to ask you to have a look at it. It's worth it!

Indicators:
MACD 5/35/5
Slope direction line 40/3

You open a trade when MACD is crossing zero line and slope direction line changed color. You close your trade when MACD is crossing back or slope line is changing color. This system helps you to find the trend and to follow the trend. Over a month it is possible to get 500 to 1000 pips depending on the pair. I have also Sniper Forex and PROFX and both systems are good. Both give some false signals. Sniper Forex gives more signals, but also more false signals. On the other hand it gives you more entry's. But the system above is similar from the signals and I think with less false signals which are taking profits over the month. I attach a slope direction line indicator.

What time frame? Can you post a chart for all to see? Sounds good and simple though.

I only trade 1 hour, also for this system. Picture of my chart attached. I changed settings for MACD to 5/35/1
I also attach my pivot point indicator.
Holger

can you explain, why you choose 40/3 slope for your direction ?

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swing trading

Have you had any success with this? Care to post some charts?
I'm going to test this for a while..Tks.

Hello,

I use 40/3 because it is more smooth, 30/3 is a little too fast in my opinion. Sniper Forex is using 30/3, some people like 55/3 and some use different settings for different pairs and time frame. The setting of 40/3 looks good on the 1 hour chart for GBP/JPY and GBP/USD. But you can try different settings, just don't change 3. 80/3 is also good. You get less signals, but 80/3 follows very well the MACD. Don't forget it is not only the system to make profit, it is also the person behind it. You have to feel comfortable with the settings. Play a little and try to find what you like. Set up the same chart with different settings and get a feeling which is following the price best.

Holger

Hi,

Thanks for your simple strategy. If you allow me, I don't want to complicate things, but once you're in a trade, you can add CCI or Stochastic to enter again when you are in overbought/oversold area compatible with the trend as long as your original criteria are met. If the trend (MACD) is down, watch for overbought signal to sell and if MACD is over the zero line, watch for oversold signal to buy. Got this idea watching a video of Sam Seiden on FXStreet.

How long have you been trading this?

Chamane

http://i35.tinypic.com/2vs0xs1.gif

Interesting system, thank you for share with us.

Thank you for sharing this. Are there any preferences on the currency pair? or does this work with most of the major pairs?