- 4H chart (I like this TF)
- indicators- MACD (12,26,9) Apply to close and Stoch. (5,3,3) Price field set to close/close. I've been using the signal bar on the stoch.
- look for a buy trigger bar (will define what a trigger bar is below) when MACD histogram bar is above 0 with Stoch. value at 40 or less. Sell trigger bar when histogram is below 0 with Stoch at or above 60. So you're buying or selling at a pullback in price most of the time.
trigger bar defined- look for a candle with a higher high and higher low (for a buy trade) that is relatively short in total length with a body that is less than 1/2 the total length of the candle. It doesn't matter what color this candle is.. I use a 50 pips max. length for the more volatile pairs (GBP/JPY,GBP/CHF,EUR/AUD ect.) and 35pips for less volatile pairs. The shorter the candle the less risk you'll be taking in the trade.
Enter trade at 1 pip above trigger candle for a buy. If price doesn't break the high of the trigger candle within 3 candles, look for a new trigger candle. If histogram goes to opposite side of zero before the break of the high, don't trade. It's ok if Stoch moves above 40 (for buy) before you enter as long as it was at or below 40 at the close of the trigger candle. See charts below
Ok, now for an example. Will post more examples later.
I'm testing a modified entry method - post#49
Many thanks to Steve Hopwood. His EA is on post#65