In trading on any financial exchange, a reliable strategy often involves combining and matching signals from two types of indicators: trend and oscillator. Everybody is looking for a perfect match when selecting technical tools that complement each other. Why? Because double-checking reliable trading systems typically yield strong and confirmed signals. The article delves into a system that demonstrates a matching approach in selecting complementary tools. The strategy’s self-explanatory name is the Match Trading Strategy.
The strategy is developed on the basis of MACD (Moving Average Convergence Divergence) and RSI (Relative Strength Index). These tools are readily available on nearly every trading platform. Moreover, both advisors have stood the test of time since their creation in the last century, proving their efficacy across various financial exchanges, including digital contracts. Both MACD and RSI assess the strength of the current movement, hence their synergy in the strategy.
How do you set up for the Match strategy?
Before diving into market analysis and seeking signals to buy contracts, it’s essential to configure your terminal correctly. Given that trading will be conducted on the digital contracts market, opting for the minimum timeframe is advisable, with 1 minute being sufficient.
Selecting a highly volatile asset is crucial, as oscillators perform poorly in sideways markets or during periods of low volatility. Therefore, opting for currency pairs involving the dollar or euro, stocks, or cryptocurrencies is recommended.
Choose a candlestick chart because it is the most informative. For the Convergence-Divergence of moving averages (MACD), default settings suffice. However, adjustments are necessary for RSI. Typically, traders set levels 30 and 70 for trading, but in this case, the levels are not useful and should be reset. Instead, if not set by default, the levels must be adjusted to 50.
How to trade with the Match Strategy?
As previously stated, both tools measure the strength of the trend. In the context of RSI, this is reflected in the position of the signal line concerning the midpoint. When positioned above 50, it indicates bullish dominance, while below 50 suggests a bearish outlook.
In MACD, the signal manifests as the moving average exiting the histogram region. An upward trend is indicated when it’s below the histogram area, whereas a downward trend is depicted above.
The CALL contract is recommended for purchase when the RSI surpasses 50 and the MACD exits into the negative zone.
The PUT option is recommended for purchase when the RSI falls below level 50 and the MACD exits into the positive upper zone.
The expiration period is 3 minutes when the timeframe is 1 minute.
Master the Match strategy and you will achieve consistent profitability in trading electronic contracts, leveraging the synergistic effectiveness of two powerful tools.
In conclusion, mastering the Match strategy empowers traders to consistently profit from trading electronic contracts. This strategy’s foundation lies in the harmonious interaction of two highly effective tools, ensuring informed decision-making and favorable outcomes in the dynamic realm of financial markets. Once you become adept at implementing the Compliance strategy, you’ll find yourself navigating the complexities of trading with greater confidence and precision.
