MACD Risk 3 time frames (MACD Risk 3 time frames) - MT4/MT5 Resources
I first saw MACD risk on the SkyStrikers MACD Risk System http://www.forexfactory.com/showthread.php?t=277168. Thanks.
If you are going to use an indicator, it makes sense to use a method with 3 timeframes (I used 5 minutes and 15 minutes, 1 hour).
One exception. Opening prices in and around London can reverse quickly and I am prepared to trade on 5 minute and 15 minute confirmations. The US trading session may take some time to shift, I would definitely wait an hour for confirmation.
Entry points are taken from the higher lows and lower highs on the 5-minute chart. Here are 2 threads trading on the 2 point breakout. How to use 1 2 3 strategy effectively http://www.forexfactory.com/showthread.php?t=232466 and Cubbybgoods to make profit all day http://www.forexfactory.com/showthread.php?t=277730. There is also a higher low lower high system http://www.forexfactory.com/showthread.php?t=108544 which uses entries at the 2 minute break and usually earlier. There are undoubtedly many other themes and these are the ones I watch.
MACD risk settings are 5 and 15 on all time frames. It is a standard MACD histogram, but the MACD signal line has been removed and replaced with a risk calculation . For any India related questions, check out the SkyStrikers post above.
set up. When all TFs are green, buy the 5-minute higher lows; when all time frames are red, sell the lower highs.
Stop loss is placed a few pips above/below the swing high or low in the last 5 minutes. Usually 15-20 points. My total risk will be no more than 2%, and many trades will have less risk than that.
Taking profits is up to you and the timing of your trade.
Basically, this helps to understand where the short-term time frame is headed. For those who like the idea of trading higher lows, lower highs, i.e. a 1 2 3 setup, but want indi to help guide the way.
I don't trade longer time frames so can't help, i.e. it will work but the stop loss will be different.
I am currently trading Euros and ancient coins.
Example attached.
5 minute chart sell. The left line shows where the 15-minute chart history turns red. It hasn’t been transferred for 1 hour. This move is a typical London opening feint. This is the LO exception. The left arrow pointing down shows a nice lower sell high. I did take this trade on the last Friday, February 4th, as shown in the Higher Low Lower High thread. The right line shows where it turned red on the 1 hour and shows 3 lower highs. Both the 15-minute and 1-hour MACD are in red.
5 Minute Chart Buy. The 1 hour candle turns green at 17 o'clock. The right line on the 15-minute chart is also green. The 5-minute line shows the closing level of the 1-hour line, shortly before a higher low is reached.
For simulated trading before going live, normal risk disclaimers apply, i.e. you are trading its risks, etc., and trading specifications apply as usual.
If you are going to use an indicator, it makes sense to use a method with 3 timeframes (I used 5 minutes and 15 minutes, 1 hour).
One exception. Opening prices in and around London can reverse quickly and I am prepared to trade on 5 minute and 15 minute confirmations. The US trading session may take some time to shift, I would definitely wait an hour for confirmation.
Entry points are taken from the higher lows and lower highs on the 5-minute chart. Here are 2 threads trading on the 2 point breakout. How to use 1 2 3 strategy effectively http://www.forexfactory.com/showthread.php?t=232466 and Cubbybgoods to make profit all day http://www.forexfactory.com/showthread.php?t=277730. There is also a higher low lower high system http://www.forexfactory.com/showthread.php?t=108544 which uses entries at the 2 minute break and usually earlier. There are undoubtedly many other themes and these are the ones I watch.
MACD risk settings are 5 and 15 on all time frames. It is a standard MACD histogram, but the MACD signal line has been removed and replaced with a risk calculation . For any India related questions, check out the SkyStrikers post above.
set up. When all TFs are green, buy the 5-minute higher lows; when all time frames are red, sell the lower highs.
Stop loss is placed a few pips above/below the swing high or low in the last 5 minutes. Usually 15-20 points. My total risk will be no more than 2%, and many trades will have less risk than that.
Taking profits is up to you and the timing of your trade.
Basically, this helps to understand where the short-term time frame is headed. For those who like the idea of trading higher lows, lower highs, i.e. a 1 2 3 setup, but want indi to help guide the way.
I don't trade longer time frames so can't help, i.e. it will work but the stop loss will be different.
I am currently trading Euros and ancient coins.
Example attached.
5 minute chart sell. The left line shows where the 15-minute chart history turns red. It hasn’t been transferred for 1 hour. This move is a typical London opening feint. This is the LO exception. The left arrow pointing down shows a nice lower sell high. I did take this trade on the last Friday, February 4th, as shown in the Higher Low Lower High thread. The right line shows where it turned red on the 1 hour and shows 3 lower highs. Both the 15-minute and 1-hour MACD are in red.
5 Minute Chart Buy. The 1 hour candle turns green at 17 o'clock. The right line on the 15-minute chart is also green. The 5-minute line shows the closing level of the 1-hour line, shortly before a higher low is reached.
For simulated trading before going live, normal risk disclaimers apply, i.e. you are trading its risks, etc., and trading specifications apply as usual.
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