Practical guidelines for working out trading tactics on FOREX

Any trading tactics consists of five stages:

1. defining the trend;
2. defining the back starting;
3. expectation of the back ending;
4. getting confirmation from another indicator or system;
5. entering the market with issuing a stop-order and take-profit.

Look at these stages in detail by the example of the trading tactics on MACD. We’ll use MACD with periods of 5, 13, and 8.

Consider that:

• bullish trend when the middle line on MACD is more than zero and there is no bullish disagreement with the price, i.e. every new peak on the price graph is proved by the next indicator’s peak;
• bearish trend when the middle line on MACD is less than zero and there is no bearish agreement with the price, i.e. every new bottom on the price graph is proved by the next indicator’s bottom;
• starting of the back is the intersection of the slow line with the quick line downward. At this the trend must be bullish, i.e. the middle line on MACD is more than zero and there is no bullish disagreement with the price;
• starting of the back upwards is the intersection of the slow line with the quick line upward. At this the trend must be bearish, i.e. the middle line on MACD is less than zero and there is no bearish disagreement with the price.