
Originally Posted by
asd111
Unfortunately, I cannot upload my charts so you'll have to read carefully...but trust me, this works way more often than not.
What you need:
Bollinger Bands, MACD, DMI and Parabolic SAR all with their respective standard settings. This strategy seems to work best on hourly and 4 hour charts. Haven't tried it on a daily but I would assume it would work as well if not better on a daily. But again, I haven't tried it on any time frame besides hourly and 4 hours.
This is the bullish set up (just reverse it for bearish):
Look for a close above the middle Bollinger band but only take the trade if these parameters are met: SAR dots are BELOW price, DMI+ is above DMI- and MACD has crossed positive below the zero line. Let me repeat that...a bullish MACD cross has to occur while the lines are BELOW the zero line.
Set your stop loss 5 pips below the low of the candle that broke the middle band and my target would be the top band. However, other people who use this technique will suggest that you ride it out until either MACD crosses negative
or when SAR dots are ABOVE price action. I think a safer play is the top band.
Or you just may want to capture some quick pips so use your own guidelines. If your target is 25 pips per day, then do that.