Moving averages with the MACD filter.
One of the most effective technical indicators to analyze the dynamics of asset price movements is considered the moving average. There is an opinion on stock exchanges that with the help of “movings”, also known as moving averages, more money is earned than with all other indicators combined. This strategy is based on and operates on the signals of this unique indicator. And thanks to an additional filter in the form of MACD, you can halve the number of false trading signals.
Indicator settings
To get started, apply the necessary technical indicators to the quote chart selected for trading assets. To do this, open the indicators tab in the lower left corner of the platform and select “MACD” with default settings.
Next, in the same manner, select the “Moving average” indicator, and specify the following in the settings:
– period “7”
– type “Weighted”:
– period “7”
– type “Weighted”:
Then, add one more “Moving Average” indicator, and change its settings to the following:
– period “21”
– type “Exponential”
– color “Blue”
– period “21”
– type “Exponential”
– color “Blue”
As a result, you will get something similar to the following template for trading with the “moving averages with the MACD filter” strategy
How to receive trading signals and enter into transactions using the strategy
In order to make an asset price reduction transaction, you must wait until the following conditions are met:
– the moving averages on the quote chart cross over in the downward direction
– on the MACD indicator, the black signal line downwardly crosses over the zero axis scale:
In order to make an asset price reduction transaction, you must wait until the following conditions are met:
– the moving averages on the quote chart cross over in the downward direction
– on the MACD indicator, the black signal line downwardly crosses over the zero axis scale:
Once these two indicator signals appear on the quote chart at the opening of a new pricing candlestick, open an asset price reduction transaction.
In order to make an asset price increase transaction, you must wait until the following happens:
– moving averages cross over on the chart in an upward direction
– on the MACD indicator, the black signal line upwardly crosses over the zero axis:
In order to make an asset price increase transaction, you must wait until the following happens:
– moving averages cross over on the chart in an upward direction
– on the MACD indicator, the black signal line upwardly crosses over the zero axis:
Once these two indicator signals appear on the quote chart at the opening of a new pricing candlestick, open an asset price increase transaction.
Additional conditions for trading:
– due to the fact that the moving averages trading strategy is based on trends, it’s best to trade with it during the day: from 7:00 to 16:00, Greenwich Mean Time, when most assets on the market follow the trend
– Use no more than 3% of your trading account for transactions, which will allow you to continue trading without trading drawdown
– When making transactions, use the expiry period of “1 minute”, which is the default in the Binomo trading platform.
– Use no more than 3% of your trading account for transactions, which will allow you to continue trading without trading drawdown
– When making transactions, use the expiry period of “1 minute”, which is the default in the Binomo trading platform.
