MACD and Stochastic Indices Trading Strategies

Combining MACD Crossover and Stochastic Crossover Indices Trading Strategy.

Stochastic indices crossover can be combined with MACD crossover stock indices indicator to form a indices trading strategy.

• Stochastic Crossover
• MACD Crossover

Example MACD Crossover and Stochastic Crossover Indices Trading Strategy

MACD and Stochastic Indices Crossover Strategies

From our Moving Averages Crossover, and MACD Crossover Indices Trading Strategy - sell stock indices signal is generated when:

1. Stochastic oscillator crossover and start moving down
2. MACD indicator generates a crossover and MACD moves downwards below center line zero mark

The sell stock indices signal was generated when all these indices crossover trading rules were met. The exit indices signal is generated when a crossover indices signal in the opposite direction is generated.

A buy stock indices signal would be generated using Stochastic Crossover and MACD Crossover Indices Trading Strategy - buy stock indices signal is generated when:

1. Both Stochastics crossover and start moving up
2. MACD indicator generates a crossover and MACD moves upwards above center line zero mark

The buy stock indices signal would be generated when all these indices crossover trading rules are met. The exit indices signal is generated when a crossover indices signal in the opposite direction is generated.

The good thing about using such a indices trading strategy - MACD and Stochastics Strategy - is that a indices trader will be using different types of indices indicators to confirm the indices signals and avoid many indices whipsaws in the process.

• Stochastic Oscillator - is a momentum oscillator indices indicator
• MACD - is a trend following indices indicator

It is very important to combine more than one stock indices technical indicator when coming up with a indices trading strategy, as a combination of indices trade signals is better than relying on just a one indices technical indicator. The stock indices indicator combinations reinforce each other's indices crossover trading signals, and cancel out false whipsaws crossover indices signals.

A trend following indices indicator helps a indices trader to analyze the overall indices market trend, while at the same time using more than one indices indicator gives better and more reliable entry and exit crossover stock indices signals.

Stochastic Crossover and MACD Crossover Day Trading Strategy - Stochastic Crossover and MACD Crossover Strategy PDF

Example 2 - MACD Crossover and Stochastic Crossover Strategy - MACD Crossover and Stochastic Crossover Indices Trading Strategy

MACD Crossover and Stochastic Crossover Strategy - MACD Crossover and Stochastic Crossover Indices Trading Strategy

For this indices example the indices trend direction is upwards, but at some point there were a few whipsaw signals generated by the stochastic oscillator - and the question is how can a indices trader avoid these indices trading whipsaws?

To avoid indices whipsaws combine two or more indices indicator signals - such as MACD Crossover indices signal to help avoid indices crossover whipsaws, for example the MACD indicator had not given a crossover indices signal although MACD indicator was very close to the zero center line level.

One indices tip is that as long as MACD stock indices technical indicator is above zero center line mark even if the MACD technical indicator lines are heading downwards then the indices trend is still upwards. As shown on the stock indices trading example above - MACD stock indices technical indicator did not go below the zero center line MACD level and after this the upward indices trend continued and MACD stock indices technical indicator was above the zero line mark and the indices market trend direction continued to move upwards.