Hi, I am currently testing a very simple trend following strategy. This system uses MACD and Stochastic with standard setting as the main indicator to generate signal. Additionally, I use a useful Super signal arrow to confirm the open position. Here is my new strategy.
Here is the idea
First, we must have a clear trend is under way. As you see, EURJPY has made a new trend on H1 timeframe above. This trend is indicated by a new MACD flip up. But do not enter the trade when the flip up occur. We need a pull back before entering BUY position.
Next, as now MACD histogram are above the zero level, check if Stochastic travelling down and break the MACD zero level line. This is the pull back process. Get ready to open BUY. When the Super signal arrow appear on the bottom, we can go Long and as you see the price move up pretty nice.
OK, so here is the summary before go Long:
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MACD is UP
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Stochastic is below MACD zero level
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Super signal arrow appear on the bottom (green arrow)
