📌An alternative MACD strategy with a very high winning rate in recent backtests. The strategy comes from a Vietnamese trader. He said that this is a very simple and efficient trading strategy that he has been using😍🚀
The first indicator used is MACD 4C, whose full name is 4COLORED MACD. There is not much difference in calculation method from the traditional MACD indicator, but 4 COLORED MACD is more intuitive in visual presentation and interpretation/
We changed the parameters of Fast moving average to 9 and Slow moving average to 11. For the beautiful color of the chart, you can refer to my settings ~
The second indicator used is the traditional MACD indicator. The fast line length is set to 13, and the slow line length is set to 34. The MACD line and signal line functions in the style bar are unchecked, and other parameters remain unchanged~
The third indicator used is the ATR stop loss indicator. Free Tradingview users can change the stop loss method without adding this indicator/
We enter ATR stop lost Finder in the indicator search bar, set the length to 13, set the multivariate to 1, and change the color to light blue and bold. These are all the tools we are going to use. The simple, crude and effective dual MACD strategy is now set~
Let’s explain the trading rules with examples. This is the one-hour chart of BTC/USDT/
The rule for bulls is that the MACD 4C indicator must deviate from the bottom of the price, that is, the price has created a new low, but the trough of the MACD 4C indicator has not reached a new low, and the MACD indicator has also seen a bottom divergence/
When the second wave trough of MACD changes from a red real column to a virtual column, all the conditions for long orders are met/
The k-line corresponding to the virtual column is the key k-line. The closing price of the key k-line is our entry position. The stop-loss is selected below the corresponding ATR line. The take-profit is selected in batches or above. To take profit at key positions, the 1 hour key level will be used for 1 hour, and the 15 minute key level will be used for 15 minutes ~
The rules for entering short positions are opposite. You can backtest and try it out. If you consider using this trading strategy, or plan to integrate it into your own trading system, it is recommended to backtest at least 500 times continuously on the variety and cycle you want to do, so that you can Be aware of the long-term operation of the strategy, and you will be more at ease in actual transactions👍
Thank you to this Vietnamese friend for sharing in the message area. I also hope that more friends will share their useful trading methods in actual transactions. Good luck will be more likely to come to those who love to share~
Okay, I wish you good morning, good afternoon and good night, bye ~ #BTC、