A Guide to Mastering the Stair Step MACD Strategy – Guest Blog Article

Many advanced foreign exchange market traders consider the Stair Step

MACD Strategy as one of the most profitable trading strategies. Since it is a

powerhouse combination of two technical indicators, it can minimize the

probability of a loss or completely protect you against one. For an

experienced trader, it can be simple. However, if you are quite new, review

it and take the advice of experts. Otherwise, participating in a winning trade

may be impossible.

Components in Action

As mentioned, the Stair Step MACD Strategy is composed of two very

important technical indicators: the Stair Step Pattern and the MACD Line. It

follows that once the MACD Line reaches the signal line [i.e. it crosses the

EMA (Estimated Moving Average)], a long signal is triggered. Conversely, if

the MACD Line fails to reach the signal line, a short signal is triggered.

The components:

(1) The Stair Step Pattern – it is the chief component of the trading

strategy. It is formed when the chart, after a period of reaching a

high, goes down until it reaches a low. Then, it accelerates back

and crosses a point that is at least a level above the previous high,

and finally plummets to a low point that is equal to the previous


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(2) MACD Line – also known as Moving Average Convergence

Divergence Line, it is a popular momentum indicator. In this

particular trading strategy, it is used as the trigger that alerts a

trader regarding the best time to enter a trade.

Tools of the Trade

Since the idea is to enter long and anticipate the MACD Line’s crossover,

using the Stair Step MACD Strategy requires a support level and a

controllable price. As it goes, a swing low should be formed in an uptrend

above or below a swing high. Additionally, it should set a manageable price

for a swing low.

A Surefire Technique

“When using the Stair Step MACD Strategy, the technique is to have a keen

eye in spotting both the Stair Step Pattern and MACD Line, Like most trading

strategies, it works alongside right market conditions” stated by an analyst

from Admiralmarkets.ae – an Arabic Forex broker. The success probability

can be increased by trading whenever you can initiate a trading setup and

whenever you see a big trend. And, as pro traders recommend, it is not best

to use during major economic announcements, as well as during holidays.



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