Support & Resistance Strategy with MACD Confirmation
This medium-term strategy focuses on trading breakouts of key horizontal levels. It combines classical Support and Resistance analysis with the MACD oscillator to filter false breaks, ensuring that momentum supports the direction of the trade on the H1 timeframe.
Strategy Profile
Timeframe
H1 (1-Hour)
Pairs
All Instruments
Type
Breakout
1. Chart Setup
Prepare your H1 chart by identifying key structural levels and adding the momentum filter:
- Price Levels: Manually draw the nearest Support and Resistance lines based on recent price peaks and valleys.
- Indicator: MACD (Settings: Fast EMA 12, Slow EMA 26, SMA 9).
2. Trading Rules
Long Entry (Buy)
- Breakout: A candlestick closes above the Resistance level.
- Confirmation: At the moment of the breakout, at least two lines of the MACD histogram are directed upwards.
- Trigger: Open a Buy position immediately after the confirmation.
Short Entry (Sell)
- Breakout: A candlestick closes below the Support level.
- Confirmation: At the moment of the breakout, at least two lines of the MACD histogram are directed downwards.
- Trigger: Open a Sell position immediately after the confirmation.
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