1-Min MACD Forex Trading Strategy

Scalping is a great way to benefit from small up/down price movements when entering trades for a short time duration.

The 1-Min MACD Forex Trading Strategy is a great scalping strategy and deploys a set of indicators that complement each other in a bid to validate short-term trade entries and exits.

Technical indicators such as the VoltyChannel_Stop_v2.1M, WildersDMI and the MACD are in use to define stop loss levels, gauge price volatility and spot trend in a timely fashion respectively.

Chart Setup

MetaTrader4 Indicators: VoltyChannel_Stop_v2.1M.ex4 (Inputs Variable Modified; useMA_HiLoEnvelope=true), WildersDMI.ex4 (Inputs Variable Modified; DMI_Length=28, ADXMode=1, ADXRMode=1, VisualMode=1), MACD (Default Setting)

Preferred Time Frame(s): 1-Minute

Recommended Trading Sessions: London, New York, Tokyo

Currency Pairs: Any low spread forex pair such as EUR/USD and USD/JPY

Download

Download the 1-Min MACD Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets put on display:

  1. If the blue line of the VoltyChannel_Stop_v2.1M custom indicator gets aligned below the candlesticks as seen on Fig. 1.0, it is an indication of upward price pressures i.e. a trigger to go long on the designated fx pair.
  2. If the lime line of the WildersDMI custom indicator cuts above the tomato line as depicted on Fig. 1.0, a buy trigger is said to be in place.
  3. If the green histograms of the MACD MT4 indicator gets aligned above the 0.00 level as exemplified on Fig. 1.0, it is a trigger to go long on the forex pair of interest.

Stop Loss for Buy Entry: Place stop loss 1 pips below trading support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes precedence:

  1. If the VoltyChannel_Stop_v2.1M custom indicator forms a red line above price bars as seen on Fig 1.0, it is a trigger to exit or take profit at once.
  2. If the lime line of the WildersDMI MT4 indicator dip below the tomato line while a buy alert is running, an exit or take profit will suffice.
  3. If the green histograms of the MACD indicator readjust to get positioned below the 0.00 level during a buy signal, an exit or take profit will suffice.

Sell Entry Rules

Enter a sell order if the following holds sway:

  1. If the red line of the VoltyChannel_Stop_v2.1M custom indicator gets placed above price bars as depicted on Fig. 1.1, it is an indication of downward price pressures i.e. a trigger to go short on the selected currency pair.
  2. If the lime line of the WildersDMI custom indicator dips below the tomato line as illustrated on Fig. 1.1, a sell trigger is said to be looming.
  3. If the green histograms of the MACD MT4 indicator gets aligned below the 0.00 level as exemplified on Fig. 1.1, it is a trigger to go short on the forex pair of focus.

Stop Loss for Sell Entry: Place stop loss 1 pips above trading resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes to the fore:

  1. If the VoltyChannel_Stop_v2.1M custom indicator displays a blue line below price bars as shown on Fig 1.1, it is a trigger to exit or take profit immediately.
  2. If the lime line of the WildersDMI MT4 indicator surges above the tomato line during a sell signal, an exit or take profit will do.
  3. If the green histograms of the MACD indicator readjust to get placed above the 0.00 level while a sell is alert is ongoing, an exit or take profit is recommended.

Sell Trade Example

Fig. 1.1

Free Download

Download the 1-Min MACD Forex Trading Strategy

About The Trading Indicators

The VoltyChannel_Stop_v2.1M.ex4 custom indicator is built on the Moving Average and the Average True Range (10) also known as the ATR MT4 indicators.

This blend means this indicator is a perfect companion for a scalping strategy.

The WildersDMI.ex4 is multipurpose intricate trend following indicator that is built on the ADX, DMI and ADXR.

Lime bars denotes a bullish trend, while the tomato red bars are indicative of a bearish trend.

The Moving average convergence divergence (MACD) is a trend-following momentum indicator that reveals the connection between two moving averages of price.