Nifty: Price Action Macd Strategy: Revisited
Aktualisiert
Free stuff -- something which we ignore in haste. Unfortunately, whatever education I have been doling out is absolutely free. So please bear with me.
Rules:
-------
Only Long trades when price > 55 EMA
Only short trades when price < 55 EMA
-------------------------------------------------------------------------------------------------------------------------------
Time Frame 1H
-------------------------------------------------------------------------------------------------------------------------------
Long Entry Preconditions:
a) Price above 55 EMA
b) MACD histogram above zero line
--Positive Divergence seen on MACD signal line (a complementary condition for High probability Entries)
Long Entry Trigger:
Price break above Significant peak fractal of previous downwave OR the break above prior peak fractal high.
Exit Strategy or Stop:
Type 1 Exit
Precondition: Negative Divergence seen on MACD signal line; and
Trigger: Break below a consolidation level or the prior minor swing low
Type 2 Exit
Hourly close below 55 EMA
Exit type I or type II whichever comes earlier
-----------------------------------------------------------------------------------------------------------------------------
Short Entry Preconditions:
a) Price below 55 EMA
b) MACD histogram below zero line
--Negative Divergence seen on MACD signal line (a complementary condition for High probability Entries)
Short Entry Trigger:
Price break below Significant fractal of previous upwave OR the break below prior swing fractal low.
Exit Strategy or Stop:
Type 1 Exit
Precondition: Positive Divergence seen on MACD signal line; and
Trigger: Break above a consolidation level or the prior minor swing high
Type 2 Exit
Hourly close above 55 EMA
Exit type I or type II whichever comes earlier
------------------------------------------------------------------------------------------------------------------------------------
# If trade exited but price shoots back piercing out of 55 EMA or is already above/below 55 EMA , a break of previous peak fractal with MACD histogram above/below zero line triggers entry again.
# Exit Strategy discussed above works well in long trades but chops in short trades. Tweaking a little by taking 1:1 or smaller targets (to previous support zones) instead of the Exit strategy may help in this issue.
Backtesting 10/2017 to 2/2018:
--------------------------------------
9896/10413 = +517
*10331/10255 = +76
*10254/10130 = +124
10344/10355 = +11
*10211/10130 = +81
*10095/10148 = -53
10323/10210 = -113
*10210/10255 = -45
10374/10469 = +95
*10409/10504 = -95
10504/11009 = +505
*10878/10781 = +97
*10511/10411 = +100
*10379/10330 = +49
10475/10478 = +3
Profit points = +1352
What I have noticed is that this strategy works very well in a trending market. It help to ride the trend to this full potential.
On short trades, we have to take profits at previous supports or else it will chop the profits. May be this is because we have been in a bull market.
I sideways market there are hits and misses.
I will try to further fine tune but keep in mind that no strategy works all the time, as visible from backtesting results.
Do hit the like button for appreciation.
Regards
Bravetotrade
Rules:
-------
Only Long trades when price > 55 EMA
Only short trades when price < 55 EMA
-------------------------------------------------------------------------------------------------------------------------------
Time Frame 1H
-------------------------------------------------------------------------------------------------------------------------------
Long Entry Preconditions:
a) Price above 55 EMA
b) MACD histogram above zero line
--Positive Divergence seen on MACD signal line (a complementary condition for High probability Entries)
Long Entry Trigger:
Price break above Significant peak fractal of previous downwave OR the break above prior peak fractal high.
Exit Strategy or Stop:
Type 1 Exit
Precondition: Negative Divergence seen on MACD signal line; and
Trigger: Break below a consolidation level or the prior minor swing low
Type 2 Exit
Hourly close below 55 EMA
Exit type I or type II whichever comes earlier
-----------------------------------------------------------------------------------------------------------------------------
Short Entry Preconditions:
a) Price below 55 EMA
b) MACD histogram below zero line
--Negative Divergence seen on MACD signal line (a complementary condition for High probability Entries)
Short Entry Trigger:
Price break below Significant fractal of previous upwave OR the break below prior swing fractal low.
Exit Strategy or Stop:
Type 1 Exit
Precondition: Positive Divergence seen on MACD signal line; and
Trigger: Break above a consolidation level or the prior minor swing high
Type 2 Exit
Hourly close above 55 EMA
Exit type I or type II whichever comes earlier
------------------------------------------------------------------------------------------------------------------------------------
# If trade exited but price shoots back piercing out of 55 EMA or is already above/below 55 EMA , a break of previous peak fractal with MACD histogram above/below zero line triggers entry again.
# Exit Strategy discussed above works well in long trades but chops in short trades. Tweaking a little by taking 1:1 or smaller targets (to previous support zones) instead of the Exit strategy may help in this issue.
Backtesting 10/2017 to 2/2018:
--------------------------------------
9896/10413 = +517
*10331/10255 = +76
*10254/10130 = +124
10344/10355 = +11
*10211/10130 = +81
*10095/10148 = -53
10323/10210 = -113
*10210/10255 = -45
10374/10469 = +95
*10409/10504 = -95
10504/11009 = +505
*10878/10781 = +97
*10511/10411 = +100
*10379/10330 = +49
10475/10478 = +3
Profit points = +1352
What I have noticed is that this strategy works very well in a trending market. It help to ride the trend to this full potential.
On short trades, we have to take profits at previous supports or else it will chop the profits. May be this is because we have been in a bull market.
I sideways market there are hits and misses.
I will try to further fine tune but keep in mind that no strategy works all the time, as visible from backtesting results.
Do hit the like button for appreciation.
Regards
Bravetotrade
Anmerkung
It began with the following post so visit the link if u wish to.
Anmerkung
Anmerkung
Anmerkung
March back testing so far:*10469/10350= +119
*10324/10150= +174
10242/10336= +94
*10336/10150= +186
Current trade should be long at 10156 but gap missed this trade. Still working on these gap entries. We will see the MACD behavior on pullback to this level. If long at this level stop would be at 10090.
Anmerkung
please ignore the 3rd trade shown above (one with +94) and current trade can't be long.Had to take EMA into account also. No buying below MA right..that was the rule.
Apologize for mistake.
Due to poor feedback, there will be no updates on this post.
Thanks for bearing with me.
Anmerkung
22March onwards*10133-10029=104
10206-10139L=-67
10133-10155L=-22
10179-10171=8
10280-10381=101
10429-10527=98
10595-10718=123
10709-10789=80
*10699-10620=79
*10490-10430=60
10649-10685=36 Grand total=+600
*Current trade10565- 10629(SL);10450(T)
Backtested it for too long now. Its time to put this strategy into practice.
Enjoy the gift from Bravetotrade :)
Anmerkung
Trades with (*) sign are short trades.
JJ Singh
Trader/Investor
Moderator, TradingView
🚀Join t.me/jjsingh_2020 ,
A Free Education channel
🚀Tweet at twitter.com/JaySingh_2020
Trader/Investor
Moderator, TradingView
🚀Join t.me/jjsingh_2020 ,
A Free Education channel
🚀Tweet at twitter.com/JaySingh_2020
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