Understanding How To Trade Profit Cross

  • 50 SMA
  • 100 SMA
  • MACD (default setup)
  • First, take a look at the 50 SMA, 100 SMA, and MACD on the charts. See if the following conditions occur:
  • The price moves above 50 SMA and 100 SMA and it trades above the closest SMA by 10 pips or more.
  • The MACD is positive within the last five bars. If not, you have to wait for the next signal.
  • If the aforementioned conditions are met, apply these steps to enter a long position:
  • Set the initial stop loss at the lowest low in the last five bars from the entry.
  • Close half the position when the price moves up two times the risk and move the stop loss to breakeven.
  • Close the rest of the position when the price moves below the 50 SMA by 10 pips.
  • Look at the moving average indicators on the charts and check the following conditions:
  • The price moves below both the 50 SMA and 100 SMA and it trades below the closest SMA by 10 pips or more.
  • The MACD is negative within the last five bars, if not you have to wait for the next signal.
  • Next, follow these steps to enter a short position:
  • Set the initial stop loss at the highest high in the last five bars from the entry.
  • Close half the position at two times risk and move the stop loss to breakeven.
  • Close the rest of the position when the price moves above the 50 SMA by 10 pips. Make sure that it’s not between the 50 SMA and the 100 SMA.

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