BEST INDICATOR COMBINATION TO SCALPING IN FOREX | XAUUSD ( RECOMENDED )

Best indicator combination in forex

In general, many traders have been able to use many of the ways chart indicators work in general in the market and put them into practice. then achieved. One of them is by combining several indicators and entering positions or making signals by combining indicators. It's not difficult, we just need to be patient to mix the right combination of indicators and try it to enter the market. In this article, I try to combine these indicators on the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) indicators. Never be afraid to be wrong let alone try! Be a Good Trader!

The Moving Average Convergence Divergence (MACD) indicator and the Relative Strength Index or what many traders usually knows as the RSI are two indicators that are very often used by most traders in the futures market. The main difference between MACD and RSI lies in the process of measuring market movement, but the positive thing about this is that these two indicators can be combined to make entry into the market and make it more accurate.

MACD is used to measure the strength of price movements in the market. Well, this indicator is done by measuring the difference between two exponential moving averages (EMA), generally the 12-period EMA and the 26-period EMA according to the settings on the indicator.

MACD DISPLAY IN MT4

Meanwhile, in this case, a function that is different but complementary is the RSI. This indicator can be used to confirm trend formations. The RSI aims to indicate whether the market is considered overbought or oversold in relation to the price level. RSI calculates the gain and loss of the average price over a certain period of time; with a base time period of 14 periods. RSI values are described on a scale from 0 to 100. Values over 70 are considered an indication of an overbought market when linked to the latest price level, and values below 30 are an indication of an oversold market.

RSI DISPLAY

So based on the description of the two indicators above, these two indicators are considered as momentum indicators, MACD measures the relationship between two EMA's, while RSI measures price changes in relation to the latest high and low.

Find Out Come on! Enry Position Combined Strategy MACD and RSI

Well remember! MACD and RSI parameter settings remain standard according to the menu bar settings on MT4:

MACD EMA periods are 12 and 26;
MACD SMA period - 9;\
RSI period - 14;
The RSI levels are 30 and 70.
Then, pay attention to how to enter the following position:

Know the Uptrend and Downtrend conditions from the MACD bar position. If OSMA is in the positive area, then the condition is an Uptrend, and vice versa.
There was a crossing between EMA-12 and EMA-26. Crossing from bottom to top indicates a Bullish Reversal (BUY entry signal), while crossing between EMA-12 and EMA-26 from top to bottom indicates Bearish Reversal (SELL entry).
The RSI line touches the overbought or oversold level. The overbought and oversold levels are not absolute. There are traders who use the 30-70 level, some use the 20-80 level. If the line touches the oversold limit (20 or 30), then the entry taken is BUY. Meanwhile, a SELL entry can be taken if the price touches the overbought level (70 or 80).