Forex Indicators

Does anyone know a good Forex MA crossover technique with exit strategy that avoids whipsaw?

Public Comments

1. Avoiding whipsaw really is dependent on the time period you are trading. Several hundred pip moves preceeded by a head fake are common in short periods on the Forex after large news events. These are hard to predict and often correct themselves within a day or even in the next trading session. MACD (and moving average) is a good signal in Forex trading, but is not really a leading indicator, which is why some black box software packages that rely on it are so unprofitable for most of the users (if that software was so good, why would they be selling it instead of trading). MACD is only useful when combined with other technical indicators, such as many chart patterns, and candlesticks as well. Often in Forex, by the time the MACD changes trend, the trade is already in a loss. Again, this is very much dependent on your time frame, and with most trading interfaces you can adjust the settings on your MACD to better fit your trade. http://www.fxstreet.com/education/a34.asp As for recommendations on learning more about MACD, I would suggest Peter Bain's course. His website looks a little hokey to me, but I have seen his materials and taken courses from some of his instructors and found them to be both honest and worthwile. http://www.forexmentor.com/ You might also want to pose this question on some of the Yahoo user groups related to Forex. There are large numbers of active traders that will be willing to give you their two cents on MACD and moving averages.