MACD and Stochastic Indices Trading Strategies
Combining MACD Crossover & Stochastic Crossover Strategy.
Stochastic indices crossover can be combined with MACD crossover stock indices indicator to form a indices trading strategy.
- Stochastic Crossover
- MACD Crossover
Example MACD Crossover & Stochastic Crossover Strategy
MACD and Stochastic Indices Crossover Strategies
From our Moving Averages Crossover, and MACD Crossover Indices Strategy - sell stock indices signal is generated when:
- Stochastic oscillator crossover & start heading downwards
- MACD technical indicator generates a cross over and MACD moves downward below center-line zero mark
The sell stock indices signal was generated when all these indices crossover trading rules were met. The exit indices signal is generated when a crossover indices trade signal in opposite direction is generated.
A buy stock indices signal would be generated using Stochastic Crossover and MACD Crossover Indices Strategy - buy stock indices signal is generated when:
- Both Stochastics crossover & begin heading up
- MACD technical indicator generates a cross over and MACD moves upward above the center-line zero mark
The buy stock indices signal would be generated when all these indices crossover trading rules are met. The exit indices signal is generated when a crossover indices trade signal in opposite direction is generated.
Good thing about using such a indices trading strategy - MACD and Stochastics Strategy - is that a trader will be using different types of indices indicators to confirm the indices signals & avoid many indices whipsaws in the process.
- Stochastic Oscillator Technical Indicator - is a momentum oscillator indices indicator
- MACD - is a trend following indices indicator
It is very important to combine more than one stock indices technical technical indicator when coming up with a indices trading strategy, as a combination of indices trade signals is better than relying on just a one indices technical indicator. The stock indices indicator combinations reinforce each other's indices crossover trading signals, & cancel out false whipsaws crossover indices trade signals.
A trend following indices indicator helps a trader to analyze overall indices market trend, while at the same time using more than one indices technical indicator gives better and more reliable entry and exit crossover stock indices trade signals.
Stochastic Crossover & MACD Crossover Day Strategy - Stochastic Crossover and MACD Crossover Strategy PDF
Example 2 - MACD Crossover and Stochastic Crossover Strategy - MACD Crossover and Stochastic Crossover Strategy
MACD Crossover & Stochastic Crossover Strategy - MACD Crossover and Stochastic Crossover Strategy
For this indices example the indices trend direction is upwards, but at some point there were a few whipsaw signals generated by the stochastic oscillator - and question is how can a trader avoid these indices trading whipsaws?
To avoid indices whipsaws combine two or more indices indicator signals - such as MACD Crossover indices signal to help avoid indices crossover whipsaws, for example the MACD technical indicator had not given a crossover indices signal although MACD indicator was very close to the zero center line level.
One indices tip is that as long as MACD technical indicator is above zero center line mark even if the MACD technical indicator lines are heading downwards then the trend is still upwards. As shown on the stock indices trading example above - MACD technical indicator did not go below the zero center line MACD level and after this the upward trend continued & MACD technical indicator was above the zero line mark & the indices market trend direction continued to move upwards.
