Fx technical trading strategies with alligator or macd live charts
The moving average convergence and divergence (MACD) is developed by Gerald Appel in the late of the seventies, indicator is one of the simplest and most effective momentum indicators available. The MACD made two trends-following indicators, moving averages, into a momentum oscillator by subtracting the longer moving average from the shorter moving average. As a result, the MACD offers the best of both worlds: trend trading in momentum oscillator . The MACD fluctuates above and below the middle of the default zero line as the moving averages converge, cross and diverge. Traders can look for signal line crossovers, centerline crossovers and divergences generate signals. Because the MACD is unbounded, it is not particularly useful for identifying overbought and oversold levels.
MACD calculation MACD two lines are 12 some that means 12 day simple moving average and 26 Selma that means 26 day simple moving average. Bill Williams shown the Alligator indicator in year of 1995. The Alligator is as much a metaphor as it is an indicator. It consists of three lines, overlaid on a pricing chart, that represent the jaw, the teeth and the lips of the beast, and was created to help the trader confirm the presence of a trend and its direction. The Alligator indicator can also help traders designate impulse and corrective wave formations, but the tool works best when combined with a momentum indicator.
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The “traits” of the Alligator are numerous. If the three lines are entwined, then the Alligator’s mouth is closed and he is said to be sleeping. As he sleeps, he gets hungrier by the minute, waiting for a breakout from his slumber when he will eat. When the trend takes shape, the Alligator wakes and starts eating. Once satiated, the Alligator closes his mouth once again and goes to sleep.
Alligator or macd trading stratiges full trade is given bellow:
Alligator indicator jaws (13 period moving average) cross teeth (8 period moving average) is “A” point this is sell signal but wait for macd cross the reliable signal, in the tread. B point is sell exit point macd cross this point its reliable for sell exit. 700 pips profit for this sell signal.
Same idea this alligator jaws and teeth crossover buy signal is entry point is “C” and the same time macd cross this signal is reliable this buy entry 657 pips profit this buy signal then exit “D” point is macd cross next new tread.
Technical trading with indicators combination
Jaws and teeth cross “E” point and macd dual line above the “0” point this is reliable buy signal and “F” point is exit in buy entry this place is macd cross point. 742 pips win this buy trade.
Then next trade is “G” point its sell entry macd bellow the macd “0”point 476 pips win this trade its alligator jaws blue line cross teeth red line. Then “H” point is macd exit point in this trade.
Alligator three line: Jaws (Blue) 13 period smoothed moving average.
Teeth (Red) 8 period smoothed moving average.
Lips (Lime) 5 period smoothed moving average.
Note: MACD sell signal must bellow the (0.00) point and buy signal above the (0.00) point Alligator and macd combined technical trading strategies is basic but its proved trader is win but my advise funmental or technical view is trading more success, Thanks for reading.
