Forex Trading Education – A Trader’s Guide To Using BB MACD Trading System

A Trader’s Guide To Using BB MACD Trading System  – BB MACD is a basic MACD (Moving Average Convergence Divergence) indicator variation, which helps in detecting the trend change points and measuring the current trend’s strength.

 
Using the BB MACD for trading is not complex at all. BB MACD indicator is drawn in the separate window on the chart and consists of three dots lines (yellow, lime and red). The change of the dots’ color is a good signal provider to buy or sell.

 

Forex BB MACD Trading Rules

 

The rule is like other trending system, the trend is friend, we will wait for the trend indicate itself, then specify the entry point. The good signal is the change of BB MACD color with thee change of trix4kids indicator color.

 

BUY Rules
  • BB MACD change from red to yellow and than lime
  • Trix4Kids indicator upward and lime color
  • Big Trend ( Hull Moving Average) above black MA in Color
  • Candle lime color and above Big Trend and MA in Color indicator
  • Blue arrow and blue ARRZZX2 appear under the previous candles

 

SELL Rules
  • BB MACD change from lime to yellow and than red
  • Trix4Kids indicator downward and red color
  • Big Trend ( Hull Moving Average) below black MA in Color
  • Candle red color and  below Big Trend and MA in Color indicator
  • Red arrow and red ARRZZX2 appear under the previous candles

 

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Don’t Be Greedy NOTE:

When you open a trade and the market does exactly what you thought it would do you are going to be tempted to hold on to the trade because you figure its going to keep moving in the same direction making you more money.

This however could backfire as the market could quickly reverse and wipe away all your gains. To avoid this you need to take profit once the market has given you a certain amount of profit. This amount should be defined in your trading plan and should be strictly adhered to.

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And losing is a part of trading and you will never escape it. As human beings we seek perfection we want to believe that if we can just find the right method we can trade the markets flawlessly and never take a loss. Unfortunately that is not the case as even the best traders in the world take losses it’s a part of the game. The key however is to not fear these losses but to simply expect them to occur and to manage your risk accordingly.



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