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Hello all, I'm relatively new, don't post very much, and really want to get good at trading, particularly with technical analysis.
At the moment, I'm working on developing a channel trading system either with Keltner Channels or Bollinger bands in combination with the MACD. The system (so far) involves placing trades at either the mid line of the Keltner/bollinger bands, placing a stop at the bottom line, and exiting at the top line, but only when the MACD histogram is positive.
It seems to me, a positive MACD value indicates bullishness on a specific stock, increasing the likeliness that the stock will go from mid line (representing a value purchase) to the outer band.
An alternative strategy is to purchase at the lower line (representing oversold), and exiting at the midline, but also only when the MACD is positive because this would represent an oversold security in a bullish environment.
My admittedly limited backtesting seems to point to some potential, but I'm also new at this. My feelings aren't easily hurt and I can take criticism pretty well, so any input on this topic would be fantastic =) and I hope to become an active participant in this forum!
At the moment, I'm working on developing a channel trading system either with Keltner Channels or Bollinger bands in combination with the MACD. The system (so far) involves placing trades at either the mid line of the Keltner/bollinger bands, placing a stop at the bottom line, and exiting at the top line, but only when the MACD histogram is positive.
It seems to me, a positive MACD value indicates bullishness on a specific stock, increasing the likeliness that the stock will go from mid line (representing a value purchase) to the outer band.
An alternative strategy is to purchase at the lower line (representing oversold), and exiting at the midline, but also only when the MACD is positive because this would represent an oversold security in a bullish environment.
My admittedly limited backtesting seems to point to some potential, but I'm also new at this. My feelings aren't easily hurt and I can take criticism pretty well, so any input on this topic would be fantastic =) and I hope to become an active participant in this forum!
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