5 Minutes MACD as Bounce Indicator

by Eko Prasetyo @ 8:50 PM I recently learnt that to make sure that a trend is still ongoing or not, you need to draw a line that connects FAST STOCHASTIC, STOCHASTIC, MACD, and POSITION curves. The line must intersect with a point that a start of a new trend in the respective curves (i.e all are starts of a bullish trend or all are start of a bearish trend). For example, take a look of these charts below In this 5 minutes chart of EUR/CAD, you can see that pink lines connect starting points of BULLISH trends, while red lines connect starting points of BEARISH trends. The blue line shows that agreeing stochastics can become a good signal that market will move to a new trend. the same things with this 5 minutes chart of USD/CAD. You can see similar behaviour that follows the meeting of three points in a straight vertical line. Some different things with this chart of USD/JPY. It has a "static period" after a BULLISH followed by BEARISH trends. But the patterns are still there: When 3 points meet, take a swing!! Now, concerning the USD/JPY chart, what do you think happened next? Take a look at the furthest end of the chart. Do you see 3 points meet? No? So what will happen then? Yes, you're right. USD/JPY was ongoing a BULLISH trend afterward!! | My Diary | Join Marketiva| |