Best Strategies Using MACD [Video]

MACD is one of the most popular indicators used by traders around the world for a reason. Where does his fame come from if this is only an interpretation of moving averages? In this material, we present two strategies of varying degrees of advancement using the MACD and discuss the differences between this indicator and the traditional EMA.

Strategy # 1

ADVANTAGES:

• • Simple and clear rules,
  • Easy to apply.

DISADVANTAGES:

• • Lots of false signals while the market is in a sideways trend

Strategy # 2

ADVANTAGES:

• • Greater precision thanks to which we receive early entry signals,
  • An additional filter, which is the interpretation of the price behavior, avoids many false signals.

DISADVANTAGES:

• • Requires experience to correctly use to read the price behavior,
  • Fewer signals.

Trading strategies is an educational cycle in which we present interesting investment systems intended for Forex market. We discuss the most important principles such as entering and exiting a transaction, the degree of risk, assessing the advantages and disadvantages and checking what results they generated on historical data.

Do you want us to check a specific strategy for you? Let me know in the comment!

The partner of the educational cycle is Tickmill broker.