I am not trying to trade every pair, every day unless it's one of those days. We will find opportunity in these trend changes.
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Marco is the indicator that runs through the price. It does 2 things for us: It identifies the overall trend direction, this is the direction we want to trade. It identifies the pullbacks within the trend and then identifies when the trend resumes, giving us entry signals.
There is a Blue line that runs through the price. This is the 50 Day Moving Average that is commonly used by traders all over the world to determine trend direction.
When price is above the 50 Day, the trend is up. When the price is under the 50 Day, the trend is down. The Marco will print Bright Green bars when the price is moving with the trend, or upward and away from the 50 Day Moving Average.
Once the pullback has finished and the market begins to move back in the trend direction, MarCo will start to print Bright Green bars once again. The Marco will print Bright Red bars when the price is moving with the trend, or downward and away from the 50 Day Moving Average. Once the pullback has finished and the market begins to move back in the trend direction, MarCo will start to print Bright Red bars once again.
The pullbacks are what we want to see when looking to take a trade. The OsMA is under the price chart and is the wavy indicator that prints red and green.
As the trend is up, there can still be weakness in the market and the OsMA will show this to us. The OsMA is a good forex indicator of market momentum. We can have an uptrend and Red OsMA bars, but this would be a no-trade scenario in a conservative approach. We can have a downtrend and Green OsMA bars, but this would be a no-trade scenario in a conservative approach. The OsMA measures momentum in the market, and when momentum fails, there is a possibility that the market can change direction.
The Bright Red bars denote strong downward momentum, so when they turn to the Dark Red bars, they hint to a failure in the downward momentum. The Bright Green bars denote strong upward momentum, so when they turn to the Dark Green bars, they hint to a failure in the upward momentum. Once we take these concepts and apply them to the trend direction in the market, we get some nice trading opportunities.
The MarCo indicator is how we are going to know what direction the trend is and then what direction to trade. I want to take a moment and look at why we want to trade with the trend direction and not trade against it. Of course, there are counter-trend trading opportunities, but those opportunities are fewer than the trend-following opportunities, and they are harder to pinpoint.
The MarCo indicator does a brilliant job showing us the direction of the trend. This is the first trade setup that we will come across. The trend changes from up to down or from down to up. The stochastic oscillator and the moving average convergence divergence MACD are two indicators that work well together. Two indicators are usually better than one. Find out how pairing the stochastic and MACD can enhance your trading, and reveal entry points.
Pay attention to how the exhaustion principle helps technical indicators signal trend reversals when abrupt value changes coincide with high trading volume.
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