Very Simple Effective Forex BBwin MACD Trading System with Moving Average and Heiken Ashi Indicators

Forex BBwin MACD Trading System is a trend folllowing Trading System and it’s based on BBwin MACD and Heiken Ashi indicator. This Forex Trading system is very simple but very-very effective.

 
Moving Average Convergence Divergence ( MACD ) is an extremely popular indicator used in technical analysis. MACD can be used to identify aspects of a security’s overall trend. Most notably these aspects are momentum, as well as trend direction and duration.
 
There are three common methods used to interpret the MACD:

  1. Crossovers – As shown in the chart above, when the MACD falls below the signal line, it is a bearish signal, which indicates that it may be time to sell. Conversely, when the MACD rises above the signal line, the indicator gives a bullish signal, which suggests that the price of the asset is likely to experience upward momentum. Many traders wait for a confirmed cross above the signal line before entering into a position to avoid getting getting “faked out” or entering into a position too early, as shown by the first arrow.
  2. Divergence – When the security price diverges from the MACD. It signals the end of the current trend.
  3. Dramatic rise – When the MACD rises dramatically – that is, the shorter moving average pulls away from the longer-term moving average – it is a signal that the security is overbought and will soon return to normal levels.
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Forex BBwin MACD Trading Rules

 

Traders also watch for a move above or below the zero line because this signals the position of the short-term average relative to the long-term average. When the MACD is above zero, the short-term average is above the long-term average, which signals upward momentum. The opposite is true when the MACD is below zero. As you can see from the chart above, the zero line often acts as an area of support and resistance for the indicator.

 

BUY Rules
  • Price has to close above the Xps v.7 XPMA indicator line;
  • The Xps v.7 XPMA indicator line has to green color;
  • Wait the Heiken Ashi Smoothed turn green color;
  • Price above upward GMMA Indicator;
  • BBwin MACD bars upward and above 0 line;
  • BBwin line above 0 line.

 

SELL Rules
  • Price has to close below the Xps v.7 XPMA indicator line;
  • The Xps v.7 XPMA indicator line has tored color;
  • Wait the Heiken Ashi Smoothed turn red color.;
  • Price above upward GMMA Indicator;
  • BBwin MACD bars downward and below 0 line;
  • BBwin line below 0 line.

 

Exit Position Options
  1. Exit when Heiken Ashi smoothed changes color;
  2. Profit Target predetermined that depends by time frame and Currency pair.
  3. Profit Target ratio 1.3 stop loss.
  4. Stop loss on the previous swing.


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