Trading Strategy

Line chart MACD Short term Positional strategy

Here we are going to use line chart with MACD.

Time Fame: Daily

We use line chart to find entry using concept of higher high and higher low and we use MACD for trend confirmation.

When macd gives a buy signal, we will try to first find higher low and we will enter into trade once higher high is formed.

Let’s check the setup in the below image first.

First thing is we should know to identify higher high and higher low. See below image.

Now our formation includes W pattern. I mean we will wait for price to make higher low and after making higher low, once price closes above previous swing high, we will intiate buy trade.

See below image. In the below image, first lower low formed, then lower high formed and then higher low formed. When higher low formed, we were waiting for the price to make new lower low or new higher high.

But price closed above previous swing high.
See below image for entry, stoploss and target. Our stop loss will be previous swing low and target as shown in image.

Now for trend confirmation we add MACD. We will take entry only if the MACD shows uptrend.

In above chart I have marked entry points after MACD buy confirmation. Trail SL instead of taking positions at every swing high break.

Always remember that no such strategy exists which gives you 100% accuracy. Only risk management can keep you alive in this trading world.