Tuesday, October 29, 2013

Trading CFD with the indicators ADX/DMI and MACD/OsMA

In an earlier post is the content about the ADX/DMI and the MACD/OsMA.

What are the MACD/OsMA and the ADX/DMI?
The MACD/OsMA and the ADX/DMI point out how the price trend behaves.  

The ADX/DMI analyzes the strengths of the trend; the MACD/OsMA analyzes how likely the trend is.  

In the post Trading Forex using the trading strategy123 trading signals is the two indicators described. 

How to analyze the price behavior using the MACD/OsMA and the ADX/DMI?
In the graph are the USD/CHF price line; the indicators ADX/DMI and the MACD/OsMA are at the button of the image.


ADX/DMI: How strong is the trend?
Between 8:15 and 9:00 is the DI+ and DI- line crossing each other; the DI+ starts to move higher than the ADX line; between 10:30 and 12:45 is the DI+ starting to get near the ADX line; in the same time period is the DI- moving closer to the ADX line.

MACD/DMI: How likely is the trend?
The MACD line crosses the signal line between 8:15 and 9:00 and the histogram starts to grow; between 10:30 and 11:15 starts the histogram to fall.

When to buy and when to sell?
A likely buy point would be between 8:15 and 9:00 as illustrated in the image with the indicators signal in mind; the sell point will be around 12:45 as the image illustrates with the indicator signals in mind.

Where to trade with the MACD/OsMA and the ADX/DMI?
PLUS500 offers the traders to trade with the MACD/OsMA and the ADX/DMI. The list of indicators is at the f(x) button on the trading platform.

If you would like to download the trading platform at PLUS500 and try it with the 25 euro welcome bonus click on this link for more information.

Please notice that your capital may be at risk trading CFD.