MACD Divergence Trading Strategy

Timeframes: M15, H1, H4

Currency: all currencies

This strategy based on 4 indicators:

1. i-MACD-Div3R - MACD standard / hidden divergence indicator;

2. CCI (14);

3. Stochastic (8,3,3)

4. Support/Resistance Levels Indicator

For open short/long position we will use MACD regular divergence signal. For this reason we will set

DrawRegularDiv = true and DrawHiddenDiv= false

Indicator will draw only regular divergence.

Short Entry

We will open long position if there will be three events:

1. The appearance of the divergence in the indicators window for sale i-MACD-Div3R draws a red arrow.

2. CCI indicator crosses the line - 100 from the top down.

3. Stochastic indicator crosses its line (signal) from the top down (it is desirable that this be in the overbought zone, ie above 80).

Long Entry

We will open long position if there will be three events:

1. The appearance of the divergence in the indicators window for purchase i-MACD-Div3R draws the green arrow.

2. CCI indicator crosses -100 upwards.

3. Stochastic indicator crosses its line (signal) from the bottom up (preferably so that it was oversold, ie below 20).

Example for short and long entry (Currency EURUSD, timeframe h1)

Closing position

Signal for closing position occurs after crossing the CCI of the opposite level.

Stop-loss level

We recommend to use support resistance levels for Stop Loss orders.