Combining MACD RSI Stochastics Stock Strategies

Combining RSI & MACD & Stochastic Trading Method.

Stochastic indicator can be combined with RSI & MACD indicators to form a stock strategy.

• Moving Averages Stock Trading Indicator
• RSI
• MACD

Examples RSI & MACD & Stochastic Trading Method

MACD RSI Stochastics Stock Strategy - Combining MACD RSI Stochastics Stock Strategies

From our Moving Averages, RSI, MACD & Stochastic Strategy - sell stock signal gets generated when:

1. Both Moving Averages are moving down
2. Stochastic moving downward
3. RSI is below 50
4. MACD heading downwards below center-line

The sell stock signal was generated when all these stock trading rules were met. The exit stock signal is generated when a trading signal in opposite direction is generated - when the technical indicators reverse.

A buy stock signal would be generated using Moving Averages, RSI, MACD and Stochastic Strategy - buy stock signal gets generated when:

1. Both Moving Averages are moving up
2. Stochastic moving upward
3. RSI is above 50
4. MACD heading upwards above center-line

The buy stock trading signal would be generated when all these stock trading rules are met. The exit stock signal is generated when a trading signal in opposite direction is generated - when the technical indicators reverse.

Good thing about using such a stock trading strategy - Moving averages, MACD, RSI and Stochastics Trading Strategy - is that a trader will be using different types of indicators to confirm the signals and avoid as many whipsaws as possible in the process.

• Stochastic Indicator - is a momentum oscillator stock indicator
• Moving Averages Stock TradingTechnical Indicator - is a trend following stock indicator
• RSI - is a momentum oscillator stock indicator
• MACD - is a trend following stock indicator

It's very important to combine more than one indicator when coming up with a stock strategy, as a combination of signals is better than relying on just a single indicator. The indicator combinations reinforce each other's trading signals, and cancel out false whipsaws stock signals.

A trend following stock indicator helps a trader to interpret the overall market stock trend, while at the same time using more than one momentum stock indicator gives better and more reliable entry and exit signals for trading stock.

Stochastics and MACD and RSI Day Strategy - Stochastic vs MACD vs RSI Trading Strategy PDF

Examples 2 - Stochastic MACD RSI Stock Strategy - RSI & MACD & Stochastic Method

Stochastic MACD RSI Stock Strategy - RSI & MACD & Stochastic Method

For this stock example the trend direction is upwards, but at some point there were a few whipsaw signals generated by the stochastic oscillator - & the question is how can a trader avoid these stock trading whipsaws?

To avoid stock whipsaws combine two or more indicators - such as MACD, RSI and Moving Average indicator to help avoid these whipsaws, for example the MACD technical indicator had not given a cross-over stock signal although MACD indicator was very close to the zero center-line level.

One stock tip is that as long as MACD indicator is above zero center line even if the MACD indicator lines are heading downwards then the trend is still upwards. As shown on the stocks trading example above MACD indicator did not go below the zero center line and after this the upward stock trend continued & MACD indicator was above the zero line mark & the trend continued to move upward.