2 Cross and MACD Forex Trend Following Strategy

Tim Morris

August 17, 2016

548

2 Cross and MACD Trading Strategy

The system is a combination of MACD and EMAs. This system works in all currency pairs on a 4 hour or daily chart.

Forex Indicator setup:

EMA: 50, 100, 5, 15
MACD Histogram (12, 26,9).

For long position:

EMA 5 must cross up the 15 EMA.
MACD lines will cross (Histogram green).
Price must be above EMA 50 and EMA 100.

For short position:

EMA 5 must cross down 15 EMA.
MACD lines will cross (Histogram red).
The price must be below EMA 50 and EMA 100.

Exit position:

Exit when EMA 5 and 15 will cross in the opposite direction.

Place stop loss on the EMA 50.

The target profit must be 60 pips for EU, 70 pips for GU at 4 hour timeframe.
Set 200 pips for EU and 250 pips for GU on a daily timeframe.
No trade when the price is between EMA 50 and EMA 100.

Recommended MT4 Brokers

XM Broker

Free $50 To Start Trading Instantly! (Withdraw-able Profit)
Deposit Bonus up to $5,000
Unlimited Loyalty Program
Award Winning Forex Broker
Additional Exclusive Bonuses Throughout The Year

>> Sign Up for XM Broker Account here <<

FBS Broker

Trade 100 Bonus: Free $100 to kickstart your trading journey!
100% Deposit Bonus: Double your deposit up to $10,000 and trade with enhanced capital.
Leverage up to 1:3000: Maximizing potential profits with one of the highest leverage options available.
‘Best Customer Service Broker Asia’ Award: Recognized excellence in customer support and service.
Seasonal Promotions: Enjoy a variety of exclusive bonuses and promotional offers all year round.