Trade Strategies

 1. MACD Trend Following Strategy

A general MACD 

https://tradingstrategyguides.com/macd-trend-following-strategy/

2. Using Moving Averages Perfectly

a. For cross over purpose, use both 20 days and 50 days moving average

b. Some stocks might not react to cross over. Hence backtest before you use

c. Use ATR trailing stoploss indicator to fix the exit point

d. Use stochaistics indicator too in addition to the moving average

e. Combining the PSAR or Supertrend with moving average cross-over would giver better results

Technical Indicators

1. Williams %R

• This is basically a momentum indicator.
• The value of the indicator oscillates between 0 and -100.
• %R reading above -50 means the price is moving upward. A reading near -100 means oversold levels.

2.  MACD

• The MACD displays a MACD line (blue), signal line (red) and a histogram (green) - showing the difference between the MACD line and the signal line.

• When the MACD line crosses ABOVE the zero line, this signals an UPTREND
• When the MACD line crosses BELOW the zero line, this signals an DOWNTREND

• When the MACD line crosses ABOVE the signal line, traders use this as a BUY indication
• When the MACD line crosses BELOW the signal line, traders use this as a SELL indication

• When the MACD line is above the signal line, then the histogram will be positive. 
• The opposite is true when the MACD line sits below the signal, whereby the histogram will plot below the zero as a negative value.

3. Stochastic Indicator

The stochastic oscillator has 2 lines (%k) and (%d). 

%K = (C-L5close)/(H5-L5) * 100

%D = 3-day SMA of %K.

where,

C = the most recent closing price.

L5 = the low of the five previous trading sessions.

H5 = the highest price recorded within the same 5-day period.

However, the period can be changed.

The 2 lines cross each other and we consider this as the buy/sell signal. 

We call the %k line crossing the %d line above as the buy signal. Whereas we call the %k crossing the %d line below as the sell signal.

The traders consider a stochastics value close to 0 as oversold, i.e, market is enough sold and can bounce back any time. Whereas they consider the stochastics value close to 100 as overbought, i.e, the market is enough bought and can take a correction any time.