Forex Focus: An MACD Trading System by Alexander Sabodin
This simple trading system was
applied successfully to forex pairs
using the moving average
convergence/divergence. See if itíll
work for you.
Today, we see advertisements
of different automatic trading systems at numerous websites
and forums. If we took those ads
seriously, all we would have to do
is click the mouse and money
would pour into our pockets. Not
only that, such black boxes usually
donít come cheap. Keeping all that
in mind, letís try to create our own
trading system. As long as you
donít lay claim to the holy grail, a
trading system can help you make
THE MACD TRADING SYSTEM
To build our own trading system,
we will use the following indicators:
1. Bollinger Bands: Period 20, deviations 2, shift 0,
apply to close.
2. MACD: Fast exponential moving averages (EMA) 12,
slow EMA26, apply to close.
3. Stochastic oscillator: %K period 5, %D period 3,
slowing 3, price field close/close.