Forex Super Momentum Trading System with best high accuracy Stochastic and MACD signals (as the most important market momentum indicator). How to use the high significance Forex Trading Signals with Super STOCH Super MACD System. This dynamic combination is highly effective if used to its fullest potential.
This “High Significance Forex Trading Signals with Super STOCH Super MACD System” article aims to encourage traders to look for and identify a simultaneous bullish MACD crossover along with a bullish stochastic crossover and then use this as the entry point to trade.
Looking for two most popular momentum indicators that work well together resulted in this pairing of the Stochastic Oscillator and the moving average convergence divergence (MACD).
This team WORKS because the Stochastic is comparing a closing price to its price range over a certain period of time, while the MACD is the formation of two Moving Averages diverging from and converging with each other.
This dynamic combination is highly effective if used to its fullest potential.
There are two components to the Stochastic Oscillator: the %K and the %D. The %K is the main line indicating the number of time periods, and the %D is the moving average of the %K.
Understanding how the stochastic is formed is one thing, but knowing how it will react in different situations is more important. For instance:
- Common triggers occur when the %K line drops below 20 – the market is considered OVERSOLD, and it is a BUYING signal.
- If the %K peaks just below 100, then head downward, the market should be SOLD before that value drops below 80.
- Generally, if the %K value rises above the %D, then a BUY signal is indicated by this crossover, provided the values are under 80. If they are above this value, the security is considered OVERBOUGHT.
As a versatile trading tool that can reveal price momentum, the MACD is also useful in the identification of price trend and direction.
The MACD indicator has enough strength to stand alone, but its predictive function is not absolute. Used with another indicator, the MACD can really ramp up the trader’s advantage.
If a trader needs to determine trend strength and direction of the market, overlaying its moving average lines onto the MACD histogram is very useful. The MACD can also be viewed as a histogram alone.
To be able to establish how to integrate a bullish MACD crossover and a bullish stochastic crossover into a trend-confirmation strategy, the word “bullish” needs to be explained. In the simplest of terms, “BULLISH” refers to a strong signal for continuously rising prices.
A bullish signal is what happens when a faster-moving average crosses up over a slower moving average, creating market momentum and suggesting further price increases.
- In the case of a Bullish MACD, this will occur when the histogram value is above the equilibrium line, and also when the MACD line is of a greater value than the nine-day EMA, also called the “MACD signal line“.
- The Stochastic’s Bullish Divergence occurs when %K value passes the %D, confirming a likely price turnaround.
This Super STOCH and Super MACD integration give traders an opportunity to hold out for a better entry point on up trending market or to be surer that any downtrend is truly reversing itself when bottom-fishing for long-term holds.
This High Significance Forex Trading Signals with Super STOCH Super MACD System is a simple momentum strategy based on two advanced visual indicators: MACD and Stochastic.
You can integrate these two most popular momentum indicators with your trading systems.
The best performance of this strategy is for the medium range market or market trend.
- Best Time Frames: H1, H4, and Daily
- Recommended Currency Pairs: GBPUSD, EURUSD, AUDUAD, and all Major Pairs
- Super STOCH
- Super MACD
- Heiken Ashi
- Tenkan-Sen Ichimoku Kinko Hyo
- Signal Trend
- Super STOCH Aqua color BUY arrow signal (Bullish Signal)
- Super MACD histogram value is above the equilibrium line (0 level), and the MACD line is of a smaller value than the nine-day EMA
- Heiken Ashi White color candles
- Price above Tenkan-Sen line
- Signal Trend Green color bars
- Super STOCH Orange color SELL arrow signal (Bearish Signal)
- Super MACD histogram value is below the equilibrium line (0 level), and the MACD line is of a smaller value than the nine-day EMA
- Heiken Ashi Red color candles
- Price below Tenkan-Sen line
- Signal Trend Red color bars
The trick of the trade – High Significance Forex Trading Signals with Super STOCH Super MACD System. The Super STOCH and Super MACD double cross allow for the trader to change the intervals, finding optimal and consistent entry points.
This way it can be adjusted for the needs of both active traders and investors.
Experiment with both indicator intervals and you will see how the crossovers will line up differently, and then choose the number of days that work best for your trading style.