The 2MA Combo Trading System uses moving average crossovers and MACD to generate super trend-oriented trading signals in forex, stocks, and crypto-assets.
This system applies 50 and 100-period simple moving averages for plotting crossover signals and determining stable trend reversal conditions.
The 50 MA of the system works as short-term dynamic support/resistance. On the other hand, the 100 MA shows the intraday trendline of the market. Once the price breaks the trendline, we consider a possible end of the current price trend.
Moreover, its custom MACD indicator provides you a closer insight into the price trend conditions and overall market momentums. According to the 2MA Combo Trading strategy, we’ll assess the trend direction using simple moving averages and confirm trade entries based on MACD momentum signals.
The 50 MA breaks above the 100 MA indicates a bullish crossover that signals an uptrend market trend is imminent. Next, the MACD value needs to be positive, with the indicator bars closing above the indicator’s signal line (red) to confirm the presence of a bullish market trend.
Once you get the above confirmation, trigger long with a stop-loss below the 100 MA level. Exit long whenever the MACD bars begin to close below the signal line.
First, the 50 MA needs to drop below the 100 MA for sell entries, plotting a bearish crossover signal. In the meantime, MACD should show a negative value confirming the beginning of a fresh bearish trend.
Trigger sell-entry once MA crossover and MACD confirm a bearish trend market. Place stop-loss above 100 MA and exit sell whenever the MACD bars begin closing above the signal line.
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The 2MA Combo Trading System is an easy-to-apply MT4 trading strategy that offers core technical information on market trends. Its moving average crossover is quite effective in identifying market biases. Moreover, it leaves you an option for filtering the trading opportunities with MACD signals for better trading accuracy. According to our review, 2MA Combo Trading System is an ideal trend-following trading strategy for beginners.