How to trade using the FXB MACD scanner
- Once you configured and tested the server connection you may put the program into the live mode. Click the "Server Connect" button with a socket image. The button turn into grayed-out (disabled) and
previously disabled "Server Disconnect". After refreshing the data and calculating MACD a scanner table with the list of currencies will popup and current bid/ask lines start moving.
- Double click the signal name on the screen left. The chart for pair selected will download and plot.
- Estimate the mode market by using the MA21 line position (yellow line) and MACD bars polarity.
- Place the order accordingly to current situation.
What type of market I am in?
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Ranging market
MA has no definite slope, it is mostly horizontal and frequently crosses the price line from top and bottom. MACD bars go from negative to positive values and vice versa
Trade both bullish and bearish signals, especially Round Tops (TP) and Round Bottoms (BT) as they provide maximum profit.
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Uptrend
MA is mostly below the price line. MACD bars mostly are positive (above zero line).
Trade only the bullish signals i.e. Round Bottom (BT) and Upper Valley (UV) but ignore the rest.
The trend will finish after the strong TP signal that must be confirmed with a long red candle. |
Downtrend
MA21 is mostly above the price line. MACD bars mostly are negative (below zero line).
Trade the Round Top (TP) and
Down Valley (DV) signal but ignore all others.
The trend will finish after the strong BT signal that must be confirmed with a long blue candle. |
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Tips and tricks I've learned in hard way
- Divide a lot size you usually trade by two. When you see a signal, open the position of ½ lot. If the market
moves in your favor, open another half, otherwise wait for confirmation and only then open another ½ or exit the
trade if the signal was false.
- Try to buy on closest support (sell on resistance) by using M15-M30 chart. This allows to use the tight stops
and cut losses early.
- Don't be fooled by last, unfinished candle, especially if there is more than 50% time frame to its completion.
It may change dramatically and make your initial judgment and trading decision wrong. Trust only to those chart
elements that cannot change.
- Though the market is never exclusively bullish, bearish or ranging but a combination of those, trading against
the main trend is very risky, especially for beginner. Use the trend corrections for entering the trade in main
trend direction but not for making money.
- Set stop-loss immediately after opening a position and don't move it away if you are losing money. The price
always reverses if you accept the loss and moves against you if you keep the losing position opened.
- Don't risk of more than 3-5% of your deposit per trade.
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Does it really work?
Believe or not but it really does! If you trade with the trend there is a big chance to gain money consistently, day by day, trade by trade.
Avoid trading against the trend. Though the deep corrections may look attractive, mostly they are follow the false signals. |
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