Countertrend Trading System

Trading signals,

Now allow's circulate directly to the riskiest strategy, which factors to access factors against the main fashion. The Moving Average Convergence/Divergence indicator is used for this approach. It is an interpretation of Moving Averages and all it does is degree the space between two such curves with durations of 12 and 26.

This distance shows the energy of the modern-day fashion, and when it starts to lower, it will become the primary signal to weaken the fashion and its feasible reversal. Visually observing this on the Moving Average indicator is not very convenient, so the MACD indicator is extra informative for these purposes.

So, the signal to open a role towards the fashion is the movement of the histograms of the MACD indicator within the contrary course from the charge. That is, if the highs at the MACD indicator lower, but on the everyday price chart they develop, then this is a signal of divergence and a sell signal.


If the lows at the MACD indicator boom and the lows at the rate chart decrease, this is a sign of convergence and a purchase signal.

For an exit point in this trading gadget, you can use the nearest aid and resistance degrees.