MACD RSI Stochastics Strategy

Combining RSI and MACD and Stochastic Trading Strategy.

Stochastic indices indicator can be combined with RSI and MACD indices indicators to form a indices trading strategy.

• Moving Averages
• RSI
• MACD

Example RSI and MACD and Stochastic Trading Strategy

MACD RSI Stochastics Strategy - Combining MACD RSI Stochastics Indices Trading Strategies

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

1. Both Moving Averages are moving down
2. Stochastic heading downwards
3. RSI is below 50
4. MACD moving downwards below center-line

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

A buy stock indices signal would be generated using Moving Averages, RSI, MACD and Stochastic Trading Strategy - buy stock indices signal is generated when:

1. Both Moving Averages are moving up
2. Stochastic heading upwards
3. RSI is above 50
4. MACD moving upwards above center-line

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

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

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

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

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

Stochastics and MACD and RSI Day Trading Strategy - Stochastic and MACD and RSI Strategy PDF

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

Stochastic MACD RSI Strategy - RSI and MACD and Stochastic 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 indicators - such as MACD - RSI - Moving Average indices indicator to help avoid these 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 indicator is above zero center line even if the MACD indicator lines are heading downwards then the indices trend is still upwards. As shown on the stock indices trading example above MACD indices indicator did not go below the zero center line and after this the upward indices trend continued and MACD indices indicator was above the zero line mark and the indices trend continued to move upwards.