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.
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
Buy Trade Example
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- 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.
- 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.
- 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:
- 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.
- 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.
- 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:
- 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.
- 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.
- 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:
- 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.
- 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.
- 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
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.