*** Forex system - MACD Divergence on Trendline

Strategy Submitted by : yoni van eynde

Time Frame : 15Mins to 1Hr

Indicators : MACD Settings 12, 26, 9

hi,

I trade MACD divergence on the 15 or 30 minute chart only when I see divergence on the 1 hour chart, if those 2 or 3 timeframes line up, I enter that trade on a 'trendline touch' i follow the rule to only enter a trade when it is in the direction of the overall trend, so bullish trend = go long on a retracement to the lower trendline of a trading channel with a positive divergence on the 2 or 3 timeframes mentionned above. The trendline touch can also be a major resistance or a daily pivotpoint.

I include in my trading strategy:

- pivote points

- MACD

- 200SMA

- Trendlines

- Price action

I m still not convinced about the usefulness of the 200sma indicator. it sometimes shows hidden resistance and support, but dont make the mistake of believing that the 200 SMA wil hold everytime the currency trades towards it

NOTE: this is only tested on a demo account, i am still looking for an indicator or additional system that enables me to find a more accurate entry point, the negative thing about MACD is that its slow, i overcome this to watch it on the 15 minute chart once a divergence is develloping on a 1 h chart.

feel free to question me or give your thought about what you should do

Kind regards

P.S.: i do not use a fixed stop, i do not believe in that kind of aproach, i adapt my stop to the market sentiment and price action (15 - 40 pips max)