Two moving averages and the standard MACD produce a setup where you can find your point of entry with an expectation that the market is ready to move. In this lesson, I will show you when and how to do it on a 5-Minute chart. This is a reliable strategy for finding a profitable trade several days a week and it only requires about 30 to 90 minutes of your time. Everything you need to trade this strategy is freely available on most charting platforms.
What’s a Combo-Hopper?
The Combo-Hopper is a setup for trading involving the Combo Method of tracking repeatable patterns with 2 moving averages, and using a signal for timing momentum from the MACD (Moving Average Convergence Divergence) indicator. These technical indicators are free.
What makes this strategy successful?
Time of day: Business happens during business hours. That’s why it’s important to trade during the active business hours. In the U.S. there is a often a wave of momentum affecting the EUR/USD currency that starts at 10:00 am Eastern Time.
Moving Averages: In the Combo Method of tracking trends and ranges, I use the 50 and 100 simple moving averages. The position of current price in relation to these 2 moving averages tells me where the market is in the process of moving from trends to ranges to trends again. This is a special setup because it doesn’t matter if it’s in a range or a trend. Either way, when price is in the Combo-Hopper position, I know it is likely to move far enough for me to collect profit, whether it continues on to trend or eventually reverses back into the range.
Timing: When the MACD crosses zero, it’s a “Hopper”. When the Hopper happens, I can see the starting (and ending) point for momentum.