Recent weeks have been full of setups based on this PA+MACD strategy so I would like to share with you a short description of it.
While trading on the forex market I had the opportunity to test a dozen of indicators offered by the MT4 platform, which I one by one eliminated from my charts to finally find out that the vast majority of these tools actually bother me more than helps. Excess information that indicators provide, often conflicting, cause uncertainty, frustration and opening orders under the influence of bad emotions, and in fact, everything that is needed to predict price movements gives us observing the price movement.
However, there are two tools that I still use, because in some circumstances they are very helpful. Before we decide to open an order, we seek additional confirmation that our analysis of the situation is correct. When the conclusions resulting from the observation of the price behaviour additionally are supported by correct interpretation of what the indicator shows us – we have in some sense a confluence allowing us to make a successful trading decision.
The indicators with which I did not part with and they accompany me on a daily basis in trading are Exponential Moving Average (EMA) and MACD, which in principle is also based on the analysis of moving averages.
How I use EMA in my trading I described in the article: “Trading based on the exponential average EMA 144”, and how I use MACD Is described here:
Trading Price Action + MACD a Way to Increase the Probability of Winning
some samples how it works: