Price Channel with MACD RSI has been developed with an aim to guide the traders all the way from entry through the exit of each market entry. This system continuously monitors the price-action changes and market momentums in order to spot potential trade opportunities with a higher probability of success for its users.
Price Channel with MACD RSI is a versatile trend following forex trading system which can be applied to trade all kinds of forex currency pairs and fits with all sorts of timeframe charts.
Price Channel with MACD RSI Overview
Once you’re done with the installation of the system at the MT4 terminal, your trading chart should appear like the following image:
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Price Channel with MACD RSI Anatomy
- Bollinger Bands: A very popular indicator among the traders for identifying overbought/oversold conditions of the market. Its upper band is considered as the overbought area and the lower band as the oversold area of the market.
- 3 EMA: It is a 3-day period Exponential Moving Average used to identify the short-term market trends. Price holding above its position when the trend is bullish and moves below its level to signal the bearish trend of the market.
- MACD: An well-known momentum oscillator that works at its best to identify the market momentums. MACD value is positive when the momentum is bullish and turns negative in order to signal the bearish market momentum.
- MACD RSI Arrow: This indicator signals the trade entries with a collaboration of MACD and RSI. It plots an upward arrow below the price bar to signal the long entry when MACD turns positive and RSI value indicates the oversold condition of the market. Contrarily, a downward arrow above the price bar is formed to signal the short entry when MACD turns negative and RSI signals the overbought condition of the market at the same time.
- Price Channel OSC: Price Channel OSC plots the crossover trend signal in order to filter the trade signals plotted by other indicators of the system. Its red slope moves above the blue one to represent the bullish crossover and the blue slope moves above the red one to indicate the bearish crossover of the market trend.
Price Channel with MACD RSI: Buy Conditions
- Price approaches near the lower Bollinger Bands
- A bullish bar successfully closes above the 3 EMA
- MACD RSI Arrow is plotted below the price bar pointing upwards
- MACD turns positive
- Price Channel OSC plots the bullish crossover signal
- Buy triggers when the above conditions are met
- Set stop loss below the lower Bollinger bands
- Exit long/take profit whenever a downward MACD RSI Arrow is formed above the price bar
Price Channel with MACD RSI: Sell Conditions
- Price approaches near the upper Bollinger Bands
- A bearish bar successfully closes below the 3 EMA
- MACD RSI Arrow is plotted above the price bar pointing downwards
- MACD turns negative
- Price Channel OSC plots the bearish crossover signal
- Sell triggers when the above conditions are met
- Set stop loss above the upper Bollinger bands
- Exit short/take profit whenever an upward MACD RSI Arrow is formed below the price bar