After the failed trade on this pair, I thought I would change the idea slightly. I have set the MACD to default settings but also drawn horizontal lines on the average positive and negative histogram points. If the signal line is above then it is extremely bullish (do not SELL) and below is extremely bearish (do not BUY). The momentum indicator is still the same. I will now be looking for a cross of the 5EMA and 14SMA and will only trade if price is on the 14SMA or between the two lines when a pull back occurs. At the same time, momentum must be on the correct side of the momentum average and the MACD must be within the horizontal lines and the signal line must have crossed correctly. I may be trading a BUY on this a bit early because the 5EMA and 14SMA are very close together and although they have crossed, they have not parted and so there is no gap between them. I'll see what happens anyway.
Comment:
Trade is in profit (demo). Stop moved to break even (standard practice).
Trade closed: stop reached:
Stopped out on break even. I am unable to re-enter the BUY trade as the momentum indicator has dropped below the 14ma line, so no longer in the parameters of my updated strategy. However, it will be interesting to see if the BUY trade would have worked regardless.