Phillip Nel 4H MACD system used as swing trading system.pdf

Phillip Nel’s 4H MACD system used as swing trading system.

As I was looking for a swing trading system, when I found Phill's system I started to

interpret it as long term trading system. This is a great system, specially entry points are

almost perfects. I have been studying it for few months and trying to interpret it in

another way, as swing trading system.

Here I am not talking about Fibonacci, support or resistance levels, pivot points, etc.

everybody should make their own analysis to determine entry and exit points. I am just

talking about how moving averages (MAs) give us the long term trend and trading

opportunities. My conclusions so far:

1. Above 200sma go long, below it go short. 200sma give you the long term trend. That

means, if trend is bullish, more profitable trades will be in that direction.

2. Perfect entry when 8, 21 and 89 MAs fan out in the proper order above/below the

200sma. A new trend is in place. For entries follow Phillip's rules. No magic about entry

rules. Follow the dance and join the party.

3. SL level: below/above 200sma, first, then below/above 89 or 21. It depends your

personality, targets and risk aversion.

4. Exit point: it depends your targets, but the exit point in the system is when 8ema

crosses the 21 in opposite direction of the trade.

5. Re-entry point: when price test 89 and goes back to the trend in compliance with

Phillip's entry rules.

In the following example you can see what I am talking about. For the second entry

point the result was 391 pips in 15 trading days aside other intraday potential trades.

26pips daily average.