Hello everyone, I am Xiao Fu!
MACD has been an enduring trend indicator, and despite its sluggishness, it is still used by many people, both novice and experienced traders.
So let's talk today about how to use MACD to break the zero axis to trade.
Indicators used in the trading method:
1. MACD (single-line and double-line are both available)
2. Moving average: 13, 60, 169 (exponential moving average)
3. Bollinger track (default parameter) The Bollinger track I use here is marked with a resistance level.
Remarks: Suitable for 15 minutes chart or above, preferably 1 hour.
Entry conditions:
1. The 13-day and 60-day moving averages are in the same direction in sequence (the 13th is above or below the 60th)
2. The K-line price is above the middle rail of the Bollinger rail
3. MACD breaks the zero axis in the same direction
4. If the MACD breaks the zero axis first, but when the 13-day and 60-day moving averages go against the trend, the moving average needs a golden cross or a dead cross, and the closing price of the k-line should enter the market above or below the 169-day moving average.
Conditions not to enter:
1. The moving average is bonded and the relative straight line crosses within the Bollinger rail.
2. When the zero axis is broken, the price of the k-line is pulled too much, and the k-line is closed outside the upper track of the Bollinger track, so do not enter the market, because if you enter the market, the stop loss will be too large and the gain will outweigh the loss.
3. If the zero axis is broken first, but the K-line price is too rough, making the 13-day and 60-day moving averages cross too slowly, they will not enter the market.
Suggestions for stop loss setting:
The relative highs and lows of the entry position, or the way you are used to setting it up.
The above is the introduction of the trading method of MACD breaking the zero axis. I hope to inspire you in the trading process! Any good suggestions are welcome. Welcome to leave a message to tell me, we grow together
Question: What is your favorite indicator to use? Welcome to leave a message and exchange.