TRADEOLOGY TRADE COMMAND CENTER
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This system is simple — and profitable.
It is so simple that you may think it looks too easy… It really is this easy to trade Forex, and you could be banking pips with this today!
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TRADEOLOGY TRADE COMMAND CENTER
With your exclusive Forex Cash Bands gift you get:
- A personal video tutorial that takes you through exactly how to make the best possible trades.
- A complete system report, that walks you from the basics through the rules so you will understand how to read every indicator for maximum cash flow.
- This completely free system is a perpetual cash machine, and could have you cranking out consistently successful trades and big profits faster than anything you’ve used yet.
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Introduction
With this system, we want to lay down all the necessary concepts of trading the Cash Bands system.
This system can be used by uses a combination of the MACD Histogram, Bollinger Bands, and Williams %R indicator.
This is a great system when the currency is in a trading range — going in a sideways direction rather than trending up or down.
If you are a beginner, it’s advisable that you limit your use of this system to times when the currency is ranging.
Let’s begin by covering the various indicators that make up the base of the system…
TRADEOLOGY TRADE COMMAND CENTER
Moving Average Convergence Divergence (MACD)
I. Definition/Description
MACD stands for Moving Average Convergence/Divergence which basically means moving together (convergence) and moving apart (divergence). There is another definition of divergence, but that is a whole other manual altogether. This indicator is based on a short-term exponential moving average, 12, a longer-term exponential moving average, 26, and a simple moving average of the difference between the two, or signal line, 9.
If you were to place a 12 EMA and a 26 EMA on the charts along with the MACD, each time the EMAs would cross, you would have a crossover of the MACD above or below its zero lines, indicating the potential start or finish of a trend.
The farther apart the 12 and 26 EMAs get, the stronger the trend — divergence. The closer they get together, the weaker the trend — convergence.
This indicator was developed in the 1970s by Gerald Appel as a trending momentum indicator and moves above and below a zero line to indicate bias of the market. Above the zero line means the market is trending upwards. Below the zero line means the market is trending downwards.
Now we don’t see the moving averages in the MACD. Instead, they are represented by what’s called a histogram. Other signals beside the zero line crossover include the signal line exiting the histogram. This will be the basis for our signals.
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