MACD is a Lagging Indicator, Before taking any Trade based on indicators we must understand are following Leading or Lagging Indicators.
Indicators are Divided into 3 Categories
- Leading Indicators
2. Lagging Indicators
3. Premium Indicators
Lagging and Premium Indicators generates momentum trade but it’s difficult to get more accuracy and Good R:R (Ex. MACD, PSAR, DMI and more)
Leading Indicators are best in the market to get more accuracy with Good R:R
RSI
MFI
CCI
BB
Above indicators if anyone can master, identifying accurate Trades are not so difficult.
Will discuss one best Strategy here with help of Leading Indicators.
Strategy Name: BB with Divergence
Conditions for Buy:
Candle must open below lower billing band and closing should inside the BB
At the same MACD, RSI and CCI should confirm the divergence.
BHARTIARTL Stock open below lower BB 01–11–2023 at th Same time MACD, CCI and RSI confirmed the Classical Positive divergence.