MACD Trading Strategy with 200 & 17 EMA

MACD and moving average crossover is powerful and consistent profitable trading indicator. Many traders use this combination to find the trading signal from the chart. These indicators are used in this simple trading system and it can be used on different time frame during London and US session. Let's discuss this useful trading strategy. 

Required Indicators:

1. MACD (default setting)

2. 17 EMA

3. 200 EMA

How to find Buy Signal:

✮ MACD needs to cross 0.0 level from lower to upper.
✮ 17 ema needs to cross 200 ema in the upper direction.
✮ If both conditions appear, then open the buy position.
✮ Set stop loss below 200 EMA or near term support.
✮ Set take profit as 1:2 or 20-50 pips for scalping

How to find Sell Signal:

✮ MACD needs to cross 0.0 level from upper to lower.
✮ 17 ema needs to cross 200 ema in the lower direction.
✮ If both conditions appear, then open the sell position.
✮ Set stop loss above 200 EMA or near term resistance.
✮ Set take profit as 1:2 or 20-50 pips for scalping

Strategy Chart Example

Timeframe: M15, M30, H1

Trading session: London and US

Risk warning:  This strategy works well for major pairs and on trendy mode. You should avoid during ranging zone and volatile news time. You must follow money management rule for this strategy. 

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