M A C D + P A R A B O L I C+ T R E N D L I N E

STRATEGY

PROFESSIONAL

OF

SUCCESSFUL

D E A L S

70%UP TO

THE STRATEGY IS BASEDON THREE TOOLS

OF TECHNICAL ANALYSIS:

MACDoscillator

Trend Line("Ray")

Parabolic SARindicator

MACD is situated under the chart.

MACD OSCILLATORis a central tool. It is used for analyzing the current trend

and forecasting the price movement.

Histogram

Two slidingaverage

PARABOLIC SAR INDICATORis used for determining the trend movement

and its reverse.

In case of an up trend, the points are situated over the chart and vice versa.

A point at the opposite side of the candlestick means reverse.

THE TREND LINE ("RAY")is used for determining the direction of the trend

and allows opening deals just according to its direction.

This strategy can be applied only to up and down trends.

Select Trend Line (left menu) from the Technical analysis window.Build the trend Line ("Ray") along the direction of the chart movement.

The combination of three toolsprovided three types

of trading signals:

1Preliminary

2Confirmative

3Main

STRATEGY SIGNALS

1 2 3

PRELIMINARY SIGNALSShow propitious moments for opening deals

and warn about the opportunity of appearing of the main signal.

STRATEGY SIGNALS

The main directionof the trend

MACD histogramclimb

Discrepancy betweenMACD histogram and the chart

Also: reverse and trend continuation figures + Bollinger Bands, RSI, Stochastic indicators.

1 2 3

CONFIRMATIVE SIGNALSUsed for confirming the main signal and determining the deal amount (risk management).

They are based on the trend life cycle.

The first Parabolic point appearsover or under the chart

(possible trend beginning)

Parabolic points are locatedfar from the chart

(possible trend middle)

Parabolic pointsare situated closely to the chart

(possible trend end)

STRATEGY SIGNALS

1 2 3

MAIN SIGNALSUsed for determining the moment of deal opening.

Trend line direction MACD fast lineand slow line crossing

The first Parabolic point appearsat the opposite side of the chart

STRATEGY SIGNALS

RECOMMENDATIONS FROM ANALYSTS:

Don`t open a deal only on the basis of preliminaryand confirmative signals.1Let all three main signals appear on the screenbefore making a decision. You may process preliminaryand confirmative signals partially.

2

If you use the 1h time framethe time for the deal shall comprise 2-3 hours.3The strategy is not intendedfor applying during the sideways trend.4

STRATEGY SIGNALS

FIRST WAY:

THREE WAYSOF TREND DETERMINATION

buildthe Trend Lines

SECOND WAY:build the channel

(support and resistance) lines.

THIRD WAY:overlap EMA

with 9 or 21 period

1ST STAGE. DETERMINE THE TREND

1ST STAGE. DETERMINE THE TREND

INTERPRET INGIf the trend line (or EMA)is directed downwards,

the trend is bearish

An opportunityto open a bearish option

An opportunityto open a bull option

If the trend line (or EMA)is directed upwards, the trend is bullish

If the trend line (or EMA)is directed sideways,

there is no trend/sideways trend

It is not recommendedto apply the strategy

1ST STAGE. DETERMINE THE TREND

CHECKING THE DIRECTION OF THE TRENDConfirm the direction of price movement at several time frames.

Select the 15 min time frame, seek confirmation at 30 min and 1 h periods

If the stated time frames confirm the trend direction the signal shall be intensified.If there are some controversies between the trend direction at different time frames

this shall attenuate the signal.

Overlap MACD with the chartfor analyzing preliminary signals

2ND STAGE. PRELIMINARY EVALUATION OF THE SITUATION

Settings:12, 26 and 9

Now evaluate the divergence between the price chartand behavior of the MACD histogram:

If there are bearish/bull trend and simultaneous ascending/descending

of histogram primeschange of price direction should be expected

Other wait for other signals to appearand only then open the deal.

2ND STAGE. PRELIMINARY EVALUATION OF THE SITUATION

1 2 3THE FOLLOWING SHALL HAPPEN SIMULTANEOUSLY:

3ND STAGE. RECEIVING MAIN SIGNALS

MACD fastand slow lines

shall cross

Reversal signalfrom Parabolic SAR

(point over or under the chart)

The price chartshall be situated as close

to Parabolic SAR as possible.

Action: open the deal according to the trend direction.Deal amount: to be determined in advance.

1

ATTENTION!THE FOLLOWING MAY HAPPEN SIMULTANEOUSLY:

3ND STAGE. RECEIVING MAIN SIGNALS

Reversal signalfrom Parabolic SAR 2 Late response from MACD

(line crossing)

Action: open the deal according to the trend direction.Deal amount: restricted.

Please note that MACD and Parabolic signals shall not be controversial.

123

CHOOSING THE TIME OF MAKING THE DEAL

Evaluate the life cycle of the trend,its direction and strength.

Evaluate the time of opening the dealusing levels and candlestick patterns.

Choose the time of making the deal2-3 times higher than the time frame used.For instance, for 1h candlesticks open deals with 2-3 h term;if you chose a 15 min candlestick open a 30 min or 1 h option etc.

12

3

NOTE!

Use high-volatility assets.

Trade from 09:00 AM MSKduring the European tradingand from 4:00 PM MSK during the American trading.

Avoid applying this strategyfrom 8:00 PM MSK to 8:00 AM MSKduring Pacific and Asian trading.

!

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