'MACD and Stochastic strategy

Set up the MACD indicator on your chart with a fast EMA (exponential moving average) of 12 periods, a slow EMA of 26 periods, and a signal line of 9 periods.

Set up the Momentum indicator by using the rate of change (ROC) formula, with a period of 10.

Set up the Stochastic indicator with a period of 14 and levels of 20 and 80.

Set up the RSI indicator with a period of 14.

Look for a bullish divergence between the MACD and the price. This occurs when the MACD forms higher lows while the price forms lower lows.

Look for the Momentum to be rising, with a positive ROC.

Look for the Stochastic to be oversold, with the %K line below the 20 level and the %D line starting to turn up.

Look for the RSI to be oversold, with a reading below 30.

When all four conditions are met, enter a long trade.

Place a stop loss below the recent swing low.

Look for a bearish divergence between the MACD and the price. This occurs when the MACD forms lower highs while the price forms higher highs.

Look for the Momentum to be falling, with a negative ROC.

Look for the Stochastic to be overbought, with the %K line above the 80 level and the %D line starting to turn down.

Look for the RSI to be overbought, with a reading above 70.

When all four conditions are met, enter a short trade.

Place a stop loss above the recent swing high.

Exit the trade when the MACD crosses the signal line in the opposite direction, or when the Momentum changes direction, or when the Stochastic reaches the opposite level (oversold for long trades, overbought for short trades), or when the RSI reaches the opposite level (oversold for long trades, overbought for short trades).