We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
Gold
Bullish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • Commodities Update: As of 17:00, these are your best and worst performers based on the London trading schedule: Silver: 0.28% Gold: 0.00% Oil - US Crude: -0.31% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/GkOHR7JE71
  • S&P 500 rising from support, chart pattern revealing itself while #Dow Jones new high brings into play ‘RST’ pattern. Get your equities technical analysis from @PaulRobinsonFX here: https://t.co/Rb5mMrOqkm https://t.co/kA8zeYlpnM
  • #S&P 500 rising from support, chart pattern revealing itself while #Dow Jones new high brings into play ‘RST’ pattern. Get your equities technical analysis from @PaulRobinsonFX here: https://t.co/Rb5mMrOqkm https://t.co/hpPegahqln
  • RT @WallStJesus: * CHATTER (UNCONFIRMED) -- traders citing FBN as citing a trade source suggesting the December 15th tariffs as gong ahead…
  • RT @economics: U.S. manufacturers expect to reduce capital spending in 2020, which would be the first annual decline in 11 years https://t.…
  • $BTCUSD is down over 3.0% from this morning's high https://t.co/UcmXUNsjes
  • Forex Update: As of 17:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.20% 🇨🇦CAD: 0.13% 🇬🇧GBP: 0.12% 🇯🇵JPY: -0.03% 🇦🇺AUD: -0.18% 🇳🇿NZD: -0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/cuTpe7Glmx
  • Indices Update: As of 17:00, these are your best and worst performers based on the London trading schedule: Germany 30: -0.05% US 500: -0.08% France 40: -0.08% Wall Street: -0.21% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/5Bwk0J689x
  • US #oil is up to retest the $59.00 psychological level that has been in play for the past week https://t.co/jDv5lpEcp1
  • Natural Gas trading is popular among traders due to its volatility. How can you trade this? Find out here: https://t.co/GSzSS9fn7Z https://t.co/HvXiOu9rDD
Anticipating a MACD Crossover

Anticipating a MACD Crossover

2010-03-19 15:57:00
Richard Krivo, Trading Instructor
Share:

Instructor's Response:

 
The anticipation of a MACD crossover (or the anticipation of any other move for that matter) is not recommended.  Remember, nothing happens until it happens. As you suggest, it is too risky. Personally, I would rather enter a trade late and be right then enter it early and be wrong.
 
A good rule for determining a limit on a trade is to simply double the amount of your stop. So if your are placing your stop at 50 pips above your entry in a short position, you can set your limit at 100 pips below your entry. By so doing, you will have a favorable 1:2 Risk Reward Ratio in place.
 
The link below will provide additional information about trading with at least a 1:2 Risk Reward Ratio...
 
http://www.dailyfx.com/forex/education/trading_tips/post_of_the_day/2010-03-16-2217-Trade_with_at_least_a.html
 

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.