Hammer and MACD. A strategy suitable for a highly volatile market, such as the current one

More training materials can be found here: https://bit.ly/38TgFm2

We present you a strategy that combines classic hammer and MACD. It will help you distinguish and discover the good formations for entering a deal. In a highly volatile market like the current one, it is good to combine several technical indicators for double confirmation, as some price action signals can be false and misleading. As the saying goes: Better two signals than one.

MACD confirming hammer formation

When we see a hammer bar forming after lengthy sales, it will most likely mean a change in short-term movement and a possible rise. Traders often miss the emerging hammer and wonder if it’s too late to enter a position. One way to confirm that the trade is still fit is to take into account the bullish rotation of the MACD indicator, which must have occurred a few days after the hammer- As you can see in the chart.

Or, for example, if you log in on the day the hammer appears, you can use the MACD as a confirmation signal and add it to your position.

Here is a step-by-step plan on how you can start using the strategy:

Step 1:
When you see the hammer bar forming, check that there are no indications of the MACD turning in an upward direction.

Step 2:
Open a position the day after the MACD rotation

Step 3:
Place a Stop Loss under the tail of the hammer.

Insights: Why this technique works

Много pro трейдъри следят класическите формации на японските свещи като hammer, за да потвърдят теорията си за вход около нивата, които наблюдават. Когато са в комбинация с класическите ,,западни‘‘ сигнали като пресичанията на MACD се превръщат в силно оръжие.

Съвети за управляването на сделки по тази стратегия:

Опита показва, че е по-добре да влезете с по-малък обем и да добавяте при корекции. Така минимизирате риска и поддържате баланса си. Също така е добре да имате повече от 1 потвърждаващи сигнала за стратегията за повече сигурност.

More training materials can be found here: https://bit.ly/38TgFm2