Forex & Stock “MACD AUTO TREND LINE” (Convergence-Divergence) Trading System

Unlike the STOCHASTICS, RSI, or CCI, there are no predetermined overbought or oversold levels in the MACD oscillator. However, the trick is to compare the highs and lows in MACD to price action in relation to previous high and lows. In doing so, you can easily find convergence and divergence.

The best way to use the MACD to find a market entry opportunity is to be a contrarian. It means looking for long opportunities when the MACD signal line is way below the 0 level and produces a buy signal.

By contrast, you should look for a sell signal when the MACD signal line is trading far away above the 0 level. And, if you find a divergence, it will only improve the chance of a windfall, as demonstrated in this example.

 

• Download “ForexWOT-MACDautoTrendLines” (Zip/RAR File).
• Copy mq4 and ex4 files to your Metatrader Directory …/experts/indicators/
• Copy the “ForexWOT-MACDautoTrendLines.tpl” file (template) to your Metatrader Directory …/templates /
• Start or restart your Metatrader Client.
• Select Chart and Timeframe where you want to test your forex system.
• Right-click on your trading chart and hover on “Template”.
• Move right to select “ForexWOT-MACDautoTrendLines” trading system and strategy.
• You will see “ForexWOT-MACDautoTrendLines” is available on your Chart.

 

• Auto Trend Lines indicator: Up Trend.
• MACD Indicator: The price makes higher bottoms on the chart, while your MACD Histogram indicator is giving you lower bottoms.
• MACD Indicator: The shorter period EMA crosses above  the longer period EMA,

 

• Auto Trend Lines indicator: Down Trend.
• MACD Indicator: The price makes lower tops on the chart, while your MACD Histogram indicator is giving you higher tops.
• MACD Indicator: The shorter period EMA crosses below the longer period EMA,

 

The best way to use the MACD to find a market entry opportunity is to be a contrarian. It means looking for long opportunities when the MACD signal line is way below the 0 level and produces a buy signal. By contrast, you should look for a sell signal when the MACD signal line is trading far away above the 0 level. And, if you find a divergence, it will only improve the chance of a windfall, as demonstrated in this example.