Easy MACD Forex Trading Strategy
Table of Contents
- 1 Easy MACD Forex Trading Strategy
- 1.1 Fratelli MACD
- 1.2 Fisher_Yur4ik
- 1.3 Easy Forex Indicator
- 1.4 Trading Strategy Concept
- 1.5 Buy (Long) Trade Setup
- 1.6 Sell (Short) Trade Setup
- 1.7 Conclusion
Rules, this is the one thing that the market doesn’t impose on a trader but at the same time, probably the most important aspect of trading in order to be profitable. That is if you’d rather be a consistent trader rather than just lucky.
Traders who are adept to making an algorithmic rule-based decision making are usually the ones who are successful in trading. The type of people who could make sense off a “yes-no” and “if-then” logic.
Easy trading is a simple rule-based trading strategy. Its aim is to gain profits by trading a confluence of three different trading indicators, all of which indicate trend direction and momentum. By trading on a rule-based trading system such as this, a trader could allow the law of large numbers to go in his favor. Sure, you would win some and lose some, but as they said, “as long as the outcome is the income”.
The Moving Average Convergence and Divergence is a staple in most trading platforms. It is a basic trading indicator that measures the difference between two moving averages and assesses the direction of the trend based on it. If the difference between the two moving averages is positive, then the trend is said to be bullish. If it is negative, then it is said to be bearish.
The most popular method of trading the MACD is by taking the trade on the cross of the midline, which is zero.
The Fisher_Yur4ik is a custom oscillating indicator. Much like the MACD, it also indicates trend and momentum. It prints histogram bars around the midline, which is also zero. If the histogram is positive, then it prints lime histogram bars, indicating a bullish condition. If the histogram is negative, then it prints red bars, indicating a bearish market condition.
It somehow closely resembles the MACD, however, its default setting tends to make it react more quickly than the MACD.
Easy Forex Indicator
The Easy Forex indicator is a custom indicator that determines the main trend direction. It does this by printing three lines, white, blue and yellow. The blue and yellow line act as the main trend lines. However, unlike most trend lines, these are printed mostly as straight lines during flat market conditions and start to slope only when the market is starting to trend. The blue line is the top line and the yellow line is at the bottom. The white line act as a signal line, which hugs the price action quite closely.
A typical strategy based on the easy forex alone would be to trade whenever the white line crosses above the blue line or the white line crosses below the yellow line.
Trading Strategy Concept
This strategy makes use of the confluence of the above indicators. However, because of the difference of the nature of the three indicators, two of it will act as a filter, while one will act as the trigger.
The Easy Forex indicator will be the main trade direction filter. This is because this somehow resembles the longer-term trend direction. Usually, if the long-term trend is bullish, price would stay above the blue line. If the trend is bearish, then price would usually stay below the yellow line.
Then, the Fisher_Yur4ik would be the second trend filter. This is because the Fisher_Yur4ik represents the faster trend. Because we are waiting for a retracement on the long-term prior to our entry, it would be good if we could align the long-term trend and the short-term trend. For this reason, we would want to wait for the Fisher_Yur4ik, representing the short-term trend, to align with the long-term trend.
Then, our signal will be coming from the Fratelli_MACD indicator. This indicator represents the mid-term trend. As such, it has lesser signals generated during choppy market conditions, making it ideal as entry signals.
The Fisher_Yur4ik, being a short-term trend indicator, would also act as our signal to exit the trade. This would allow us to exit the trade earlier prior to the actual reversal of the market. This allows us to stay in profit and not give back a big chunk of it to the market.
Lastly, we would also be making use of fractals just as a basis for our stop loss.
Timeframe: preferably 15-minutes and 1-hour charts
Currency Pair: any
Trading Session: any
Buy (Long) Trade Setup
- Price should be above the blue line of the easy-forex-system indicator
- The Fisher_Yur4ik indicator should print lime histogram bars
- Enter a buy order as soon as the Fratelli_MACD crosses above zero and prints lime dots
- Set the stop loss at the fractal below the entry candle
- Close the trade as soon as the Fisher_Yur4ik indicator prints red histogram bars
Sell (Short) Trade Setup
- Price should be below the yellow line of the easy-forex-system indicator
- The Fisher_Yur4ik indicator should print red histogram bars
- Enter a buy order as soon as the Fratelli_MACD crosses below zero and prints magenta dots
- Set the stop loss at the fractal above the entry candle
- Close the trade as soon as the Fisher_Yur4ik indicator prints lime histogram bars
This strategy, if used on the right market environment, could allow for very profitable trades. However, if used on a ranging market condition, this strategy could cause some small losses. The key to this strategy is to use it when price action has also shown signs of breaking out of a contraction phase and is starting to resume the trend. It could either be a break of a trendline or a strong momentum candle. Any hint that the trend is resuming would be good as it would increase the probability of a profitable trade.
Forex Trading Systems Installation Instructions
Easy MACD Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator(s) and template.
The essence of this forex system is to transform the accumulated history data and trading signals.
Easy MACD Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can assume further price movement and adjust this system accordingly.
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How to install Easy MACD Forex Trading Strategy?
- Download Easy MACD Forex Trading Strategy.zip
- Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
- Copy tpl file (Template) to your Metatrader Directory / templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your forex system
- Right click on your trading chart and hover on “Template”
- Move right to select Easy MACD Forex Trading Strategy
- You will see Easy MACD Forex Trading Strategy is available on your Chart
*Note: Not all forex strategies come with mq4/ex4 files. Some templates are already integrated with the MT4 Indicators from the MetaTrader Platform.
Click here below to download: