MACD and 21 Moving Average COMBO Trading Pattern!!

By | August 9, 2015

Tuesday, August 9th, 2015 by Ashraf Moos 

Mikes_Binary_Options_Signals (1)

What kind of insight do we get by setting up the MACD and 21 Moving Average trading pattern? Instructions:

1) Trade short-term Reversals & Into Momentum.
2) The 21 MA gives us the momentum ‘price bursts’through and breaks with the previous structure.
3) The MACD HISTOGRAM confirms the move with momentum building towards the right side of the trade.
4) The MACD also invalidates 21 MA signals when the momentum is non existent so if we have 21 MA signals but the confirmation of the MACD is not there we do not enter a trade, as there is no momentum in the direction.

Below are the rules for Put and Call options based on the MACD and 21 Moving Average trading pattern:
Rules for Call Options

1.Price must be traded below the 21 MA, break above and close above it.

2.The MACD must turn positive to validate momentum to the upside

3. Expiry Times:

M1 = 5 MIN OPTIONS
M5 = 20-30 MIN OPTIONS
M15 = 45 – HOUR OPTIONS

 

See the setup below for a Call Option:

macd1

Rules for Put Options

1. Price must be traded above the 21 MA , break below and close below.

2. The MACD must turn negative.

3. Expiry times will be the same as explained for the CALL options.

Please use a Free Demo Account when testing my trading patterns please, This combination is very powerful when used correctly and also very simple to implement.

There are only two rules so please follow them correctly. FOR EXAMPLE: If the candle breaks 21 MA down and MACD is coming from the top..you might think to yourself, well it’s probably getting ready to turn negative but it doesn’t and you have entered a bad signal. ALWAYS WAIT FOR MACD CONFIRMATION.

TRADE ONLY DURING THE MOST LIQUID TIME IE: LONDON/NY SESSIONS.

TRY AND STICK TO THE MAJOR PAIRS SUCH AS EUR/USD,GBP/USD,USD/JPY,USD/CAD,USD/CHF AND AUD/USD. I HOPE YOU FIND SUCCESS USING THIS trading pattern. NEXT UP ICHIMOKU!!!!! and then will focus on video lessons for the 4 trading patterns Ive given you :)))) happy trading peeps!!

Join me and other traders at Mike’s Signals Group on Facebook and don’t forget to share your feedback below.

3 thoughts on “MACD and 21 Moving Average COMBO Trading Pattern!!

  1. Akpotu

    Hi Mike,
    I have been trading this strategy on iq option. ITM too poor.How does the macd histogram show momentum?Do you mean that if is up move all the bars will be green and will increase in heigth?Please throw more light on the histogram and momentum.
    Akpotu.

    Reply

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