A few notes when using the strategy:
  • Timeframe: Use M1 timeframe
  • Indicator: 2 main indicators are MACD and Stochastic
  • Indicator settings: MACD you set according to parameters (13, 26, 9) and the Stochastic indicator we set according to parameters (5, 3, 3).
  • Session: The best time to use this strategy is during the European session and the US session.
  • Currency pairs: You should choose the pairs with medium or high volatility (major currency pairs are also quite suitable).
After you set up the chart in accordance with the above requirements, now just follow the chart according to the trading principles below, if everything qualifies, you can start opening a position. deal.

Trading principles

As for the rule for long positions

You see the picture with the trading rules below:

  • The first condition is that the MACD Histogram line needs to be above zero, indicating that the market is going up strongly.
  • After the MACD meets the conditions, you check the stochastic indicator. After Stoch falls below 20, it is okay to have either% K or% D rise back above the 20 levels.
  • After the above two conditions are met, the moment Stoch goes above the 20 levels, you can open a long position at the market price when the next candle opens. Place the stop loss 1 pip from the lowest price of the nearest low.
  • Take profit points are about 10 pips.
For the rule for short positions

You see the picture with the trading rules below:

  • The first condition is that the MACD Histogram line needs to be below zero, indicating that the downtrend is getting stronger.
  • After the MACD meets the conditions, you check the stochastic indicator. After Stoch rises above 80, it is okay to have either% K or% D fall back below 80.
  • After the above two conditions are met, the moment Stoch falls below 80, you can open a short position at the market price when the next candle opens. Place the stop loss 1 pip from the highest price of the nearest high.
  • Take profit points are about 10 pips.
The strategy is quite simple and short, right? Trading on M1 will encounter many noise signals, so you should pay more attention to capital management