Donchian Channel and MACD Trading System

Donchian Channel and MACD Trading System is a trend following system very used by traders.

The slow MACD is the filter of the Signals of Donchian Channel. This is a winning combination.

Time Frame 30 min, 60 min

Currency pairs: EUR/USD, GBP/USD, USD/JPY, USD/CHF, GBPJPY, EUR/NZD, NZD/USD, AUD/JPY.

Forex Indicators:

Donchian channel (20 , 14, 1).

Slow MACD oscillator (24, 48, 12).

In this forex system the MACD oscillator used as a filter and we have verified that slow MACD is better of the MACD with default setting.

Trading Rules Donchian Channel and MACD Trading System

Buy

The price breaks the upper border of the Donchian channel.

The Slow MACD histogram value is above zero.

Sell

The price breaks the lower border of the Donchian channel.

The Slow MACD histogram value is below zero.

Exit

Profit Target 50-60 pips

Initial stop loss 30-40 pips.

After 25-30 pips in gain move stop loss at the break even or use trailing stop.

Expected profitability is about 50%.

In the chart below examples of trades.