How to Combine Different Indicators?
First, you get an SMMA (Smoothed moving average) with a period of 30. It is then followed by MACD 1 with parameters (25, 50, 9). In addition, an MA with a period of 15 is necessary to form the entry signs. After that, you will need another MACD 2 indicator with parameters (6, 12, 1) as the last bolt to finish the machine and bring it on.
Conditions for purchases under the rules combinations:
- MACD 1: The MA with a period of 15 intersects with the moving average of the indicator MACD itself and is to be lower.
- The MACD 2 is above zero and is increasing;
- The price is above the SMMA;
- The first closed candle with a green body is the sign for a buy order;
- The stop loss is 30 points under the transaction price;
- After passing 30 points in the positive zone, you should move the stop-loss to breakeven;
- As soon as the MACD 1 and its own MA line intersect in the opposite direction, the buy position should be closed immediately.
Conditions for sales:
- MACD 1. The moving average with period 15 intersects MACD and is higher;
- The MACD 2 is below zero and is decreasing;
- The price on the chart is below the SMMA;
- The first closed candle with a red body is the sign for a sell order;
- As soon as the lines in the indicator window of MACD 1 intersect in the opposite direction, the transaction should be closed at the current market price;
- A fixed-profit order - You can set it at a distance of 200 points from the entry point to the deal.
If you like this strategy, you might also be interested in this Forex Candlestick Patterns
Important rules when applying this strategy:
- Opening one position at a time is a high recommendation;
- Don’t enter the market until the candle of confirmation is totally closed;
- When the crossing on MACD 1 shows up, the price can cross the MA only once to form an effective sign. If there are more intersections, then all subsequent signals should be ignored;
- All signals (except the MACD 1 signal) must be received within one trading day;
- The maximum risk for each transaction shouldn’t be more than 2% of your total balance.
Pros and cons of forex Indicator Combination
- Helps you to catch a new trend early;
- Uses popular built-in indicators;
- Easy to install and track;
- Provides a detailed guide on buy and sell conditions.
- For such an early entering in the market, you may face some stop-loss orders before actually getting into the right trend;
- Requires patience and good emotion control.
If you are randomly choosing indicators for technical analysis, chances are you’ll pick some with similar studies
Forex Indicator Combination is an effective technical strategy with quality indicators to early high-probability entries. Given the H1 time interval, this strategy is incredibly suitable for intraday traders. Coming with many advantages and a high-profit that often allows a single good shot to cover three or even five stop-loss, it is totally worth a try on this strategy and make it your long-term gold mine.