It is an impressive forum thread. It began in 2007 and it is still active now. It has 1338 pages and growing. Trading patterns off the indicator instead of price reminds forex factory ninjatrader of the Woodies CCI.
This trading strategy uses five moving averages as support and resistance points. We are not forgetting the namesake of this trading strategy. Rules for 4-Hour MACD Forex Trading Strategy This MACD forex trading strategy has many possible setups. Philip Nel recommended trend continuation setups for beginners. I interpreted the strategy and came up with the following trading rules to trade continuations.
These rules side-stepped the need to look for chart patterns. The background color of the MACD indicator shows if MACD is increasing or decreasing. I left out the horizontal lines as we are not using them for our review. This chart shows a trend continuation after around two days of consolidation. Price is below 89 EMA and the five moving averages are spreading out nicely. These are signs of a clear trend. Shortly after the strong bear thrust bar, the MACD started to rise.