Scalping on MACD and levels - a new method

A new method of intraday or scalping trading, depending on the timeframe used, we will consider with you in this article. Interest in this strategies appeared to the experts of ForTrader.org magazine due to a relatively new thought in the approach to market analysis. As working filters we will use the traditional MACD indicator and price chart. Since the methodology has not been fully tested yet, it is assumed that it can be tested on different currency pairs and timeframes.

Strategy tools

• Currency pair: AUDUSD and others
• Timeframe: М30
• Indicators: MACD(24, 52, 18), EMA(100)

Scalping strategy rules

Set the indicators on the required instrument and timeframe, and we should get a rather trivial and unsophisticated picture. We have not previously stated the moving average, as it is practically a side tool, which we will talk about below. Let's move on to the strategy itself.

To work, we need to find ascending and descending zones on the MACD: the descending zone is below the zero mark, while the ascending zone is above it. We mark the two closest such blocks, find on them ExtremeFor upward movement - the highest bar, for downward movement - the lowest bar. Mark the bars of the price chart corresponding to the found MACD bars and build on them  horizontal channel. The upper level of the channel, and in fact resistancewill be the line drawn at the price of the bar corresponding to the peak of the upward movement, the lower level, or support - the line drawn at the close of the bar corresponding to the lowest reading of the MACD downward movement.

We will open trades on breakdown of the formed channel: purchase transaction is opened when resistance is broken upwards, sale transaction - when the support level is broken downwards. EMA is required for those who work exclusively on the trend, i.e. buy will be only at the ascending sliding, sell - at the descending. But this rule is left to the discretion of the trader.

The rules for managing the trade were not suggested by the author of the TS, so ForTrader.org magazine suggests that lock in profits at the first change of MACD direction. That is, if we have a sell trade, the signal to close will be the appearance of the next bar of the indicator, which will be higher than the previous one. It is also possible to use tralling stop and fixed levels.

In case a new movement is formed on the MACD indicator and the channel is not broken, rebuild it and cancel the previous levels.

Commentary from ForTrader.org: dan strategy is easy to execute and gives a relatively stable profit even in a flat area. Therefore, we recommend you to take a closer look at it.