Trend trading strategy with MACD and Parabolic indicator in Olymp Trade

Trend trading strategy with MACD and Parabolic indicator in Olymp Trade

At any level, traders always want to hone their skills and look for the most effective trading strategies to increase their income in the financial markets. The strategy of combining 2 MACD – Parabolic indicators is one of the effective trading methods that many investors are finding for a long time. It helps traders choose a reasonable entry point according to the trend to have the lowest risk. Now let’s dive into the trend trading strategy with MACD and Parabolic indicators.

Detect the trend with the MACD and Parabolic indicator

MACD is one of the indicators that can accurately determine the value it creates through 2 main factors, convergence and divergence. Moreover, this indicator also clearly identifies the strength – weaknesses of the price change process. It is classified as a late indicator, based on historical data for pricing.

The full name of Parabolic SAR is Parabolic Stop And Reverse. This name also partly shows that the main function of the indicator is to assist in determining the trend of the market, namely detecting overbought and oversold zones. Thereby, it helps investors find the exit point of the old trend or enter an order at the start of a new trend.

Trend detection with the MACD and Parabolic indicator
Trend detection with the MACD and Parabolic indicator

With the specialized feature of trend detection of these 2 indicators, you will easily find nice trending entry points.

How to set up the trend trading strategy with MACD and Parabolic indicator

First, you click “Indicator” and choose “Parabolic” and “MACD”.

How to set up the trend trading strategy with MACD and Parabolic indicator
How to set up the trend trading strategy with MACD and Parabolic indicator

You can turn off the Histogram column of the MACD indicator for easy observation.

Customize MACD indicator
Customize MACD indicator

Once the setup is complete, you will see a screen like this.

Interface after setting up MACD and Parabolic indicator
Interface after setting up MACD and Parabolic indicator

To enter a trade safely, you must meet the following 2 conditions.

Enter an UP order when the MACD (green line) crosses the signal line (orange) from below. At the same time, the Parabolic indicator is below the Japanese candlestick chart.

Enter a DOWN order when the MACD indicator cuts the signal line from above. At the same time, the Parabolic indicator is above the Japanese candlestick chart.

How to enter a trade with MACD and Parabolic strategy
How to enter a trade with MACD and Parabolic strategy

Review the MACD and Parabolic trading strategy on December 27

  • EUR/USD currency pair
  • Balanced capital management: 100$/order
  • Target profit: 150$/day.
  • Expiration time from 15 to 30 minutes.
Review the MACD and Parabolic trading strategy on December 27
Review the MACD and Parabolic trading strategy on December 27

Order 1: The market started a downtrend when many red candles appeared in a row. The MACD crossed the signal line from above. Meanwhile, the Parabolic indicator is above the candlestick chart, which is eligible to open a DOWN order. After 30 minutes, the correct prediction brought in an $82 profit.

Order 2: The market showed signs of reversing from bearish to bullish. When the MACD crossed the signal line from below, the Parabolic indicator is below the candlestick chart. Opened an UP order as soon as those signals were confirmed. This continued to be an accurate prediction that brought in $82 in profit.

So after having exceeded the profit target for the day, I turned off the laptop and left the market.

Summary

This is a safe and stable profitable trend trading strategy you need to try. Let’s start getting acquainted with the Demo account to test it most thoroughly. You should only trade for real when the test results are extremely good for at least 2 consecutive weeks. Good luck and happy trading.

Join the Olymp Trade Club Signal Group: https://t.me/olymptradeclub19

Trend trading strategy with MACD and Parabolic indicator in Olymp Trade
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