In this this example I will discuss a possible medium trend term, day trade opportunity to maximize a short directly above the main line. You must stay patient with this strategy and not a expect a huge return. This strategy can lead to a minor loss if a long term trend breaks out over the line.
When a signal for short happens directly above the main the line you can expect significant pulls backs and the MACD line will eventually break through to profit. As seen here the initial sell crosses down and immediately pulls over the mainline signaling a buy. This indicates a sell will signal which confirms the MACD line will cross back down over the main line negating any sort of long term above the main line. This is your natural indicator that your MACD line will pass your initial sell into profit. Next we see a minor pull back under the line which enters histogram with no no buy signal. This is our confirmation to hold and follow MACD line to break/take profit. Histogram signals the exit prior to trade exit signal.
In short the most important natural indicator in this strategy is the sell above the main line which negates a trend above line while signaling a profitable trade. This example played out in a day.
To further maximize your profits within this day long trade follow scalping strategy I explained in my other ideas.
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