- May 23, 2019
- Posted by: Forex Wiki Team
- Category: Forex Trading System
Reversal Trend with Donchian Bands makes use of Donchian Bands and Shifting Averages alongside with MACD as a way to set up a development following buying and selling technique. This foreign currency trading system generates commerce alerts primarily based on Shifting Common crossovers and filters them with different supportive indicators.
Reversal Trend with Donchian Bands could be utilized to commerce all types of foreign exchange forex pairs accessible available in the market. Moreover, this technique matches nice with all kinds of timeframe charts throughout the MetaTrader 4 platform.
- 1 Reversal Trend with Donchian Bands Overview
- 2 Reversal Trend with Donchian Bands Anatomy
- 3 Reversal Trend with Donchian Bands: Purchase Situations
- 4 Reversal Trend with Donchian Bands: Promote Situations
REVERSAL TREND WITH DONCHIAN BANDS OVERVIEW
Set up Reversal Trend with Donchian Bands at your MT4 terminal and cargo it on the chart. When you’re performed, your buying and selling chart will seem like the next picture:
REVERSAL TREND WITH DONCHIAN BANDS ANATOMY
- Donchian Bands 1, 2 & 3: These bands are used to outline the dynamic assist/resistance ranges of the market. Donchian Bands 1 and 2 are good for short-term buying and selling thus relevant to M1 to M15 charts. Donchian Bands 3 works nice on intraday and day by day timeframe charts.
- 10 & 21 LWMA: These are 10 and 21-day interval Linear Weighted Shifting Averages that are used to plot the crossover development alerts. 10 LWMA strikes above 21 LWMA is outlined because the bullish crossover. Oppositely, 21 LWMA strikes above 10 LWMA represents the bearish crossover alerts.
- MACD: MACD is a well known indicator among the many momentum primarily based merchants. On this system, this indicator has been utilized as a commerce sign filter. MACD worth turns constructive and its fast-MA turns blue to sign the purchase entry alongside with the bullish momentum. A destructive MACD with purple coloured fast-MA represents the promote sign following the bearish thrust of the present market momentum.
REVERSAL TREND WITH DONCHIAN BANDS: BUY CONDITIONS
- The worth degree is supported by the decrease Donchian Bands
- 10 LWMA strikes above the 21 LWMA
- MACD turns constructive and the fast-MA turns blue
- Purchase triggers when the above circumstances are met
- Set cease loss under the present LWMAs ranges
- Exit lengthy/take revenue each time 21 LWMA strikes above 10 LWMA and the fast-MA of MACD turns purple
REVERSAL TREND WITH DONCHIAN BANDS: SELL CONDITIONS
- The worth degree is resisted by the higher Donchian Bands
- 10 LWMA strikes under the 21 LWMA
- MACD turns destructive and the fast-MA turns purple
- Promote triggers when the above circumstances are met
- Set cease loss above the present LWMAs ranges
- Exit quick/take revenue each time 21 LWMA strikes under 10 LWMA and the fast-MA of MACD turns blue
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