MACD Divergence Strategy

Discussion in 'Trading Systems and Strategies' started by Enivid, Nov 3, 2009.

  1. Enivid

    Enivid Administrator Staff Member

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    Discuss MACD Divergence Strategy here. MACD Divergence Strategy is a simple Forex trading strategy based on the standard indicator. You can ask any questions about this strategy here.
     
  2. XRanger

    XRanger Active Trader

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    Thanks for sharing. Divergence is a very good set-up, however it is very suggestive and is hard to identify objectively in real time. It is better to use an indicator to generate the divergence signals (ITIC sells one).
     
  3. FXexpert

    FXexpert Master Trader

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    Thanks for sharing, this can be a very effective strategy!
     
  4. Vanhook2

    Vanhook2 Active Trader

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    Just to help the thread on the way....

    Here is a MACD indicator that shows divergence.
     

    Attached Files:

  5. kelvinlee

    kelvinlee Active Trader

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    Personally, I also love to trade MACD divergence as I find them pretty consistent.

    It will be better if you can add an oscillator like RSI or Stochastic to it as it can improve your entry position.

    When you see a divergence, you will check your indicator for sign of overbought or oversold before you enter your trade. This can gives you a better entry.
     
  6. SimplyFX

    SimplyFX Active Trader

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    Thanks for sharing. Looks like a promising strategy.
     
  7. brad411

    brad411 Active Trader

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    Divergence has been one of the better strategies for me, knowing when to pull the trigger is the tricky bit, i like to use S+R, pivots and trend channels for confirmation.
    4hr charts have given me the best results...find them less choppy.

    Brad.
     

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