MACD RSI Stochastics Strategy

Combining RSI & MACD and Stochastic Strategy.

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

• Moving Averages Technical Indicator
• RSI
• MACD

Examples RSI and MACD & Stochastic Strategy

MACD RSI Stochastics Strategy - Combining MACD RSI Stochastics Strategies Methods

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

1. Both Moving Averages are moving down
2. Stochastic moving downward
3. RSI is below 50
4. MACD moving downwards below centerline

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

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

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

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

Good thing about using such a strategy - Moving averages, MACD, RSI and Stochastics Strategy - is that a trader will be using different types of indicators to confirm the signals & avoid as many whip-saws as possible in process.

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

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

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

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

Examples 2 - Stochastic MACD RSI Strategy - RSI and MACD and Stochastic Strategy

Stochastic MACD RSI Strategy - RSI and MACD and Stochastic Strategy

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

To avoid indices whipsaws combine two or more indicators - such as MACD - RSI - Moving Average indicator to help avoid these whipsaws, for example the MACD indicator had not given a cross over 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 trend is still upwards. As shown on the example above MACD indicator did not go below the zero center line and after this the upward trend continued and MACD indicator was above the zero line mark and the trend continued to move upward.