7 MACD Forex Trading Strategy

The 7 MACD FX trading strategy is an intraday strategy that incorporates three signal trading indicators in delivering reliable buy/sell alerts in the market.

The strategy can also be deployed as a scalping strategy when used on smaller timeframes like the M1, M5 and M15 timeframes.

Chart Setup

MetaTrader4 Indicators: 7_Macd.ex4 (default setting), 2pbldeal3MA.ex4 (yellow), 2pbldeal3MA.ex4 (blue)

Preferred Time Frame(s): 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour

Recommended Trading Sessions: Any (London & US for scalping on M1 and M5)

Currency Pairs: Majors + cross pairs

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Place buy order(s) if the following rules or conditions holds true:

  1. If the mixture of blue & pink lines crosses the lime line of the 7_Macd.ex4 custom indicator bottom up as shown on Fig. 1.0, it is an indication that price being pressure higher i.e. a bullish signal. The grey colored histogram that is aligned above the 0.00 signal level on the 7_Macd.ex4 also points to a bullish signal.
  2. If the 2pbldeal3MA.ex4 (blue) line crosses the 2pbldeal3MA.ex4 (yellow) line bottom up, it is a signal that price is being pressured higher i.e. a bullish signal.

Stop Loss for Buy Entry: Place stop loss 2 pips below short-term support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit on position(s) if the following indicator or chart patterns are in display:

  1. If the mixture of blue & pink lines crosses the lime line of the 7_Macd.ex4 custom indicator top downward as shown on Fig. 1.0, it is advisable to exit or take profit accordingly.
  2. If the 2pbldeal3MA.ex4 (blue) line crosses the 2pbldeal3MA.ex4 (yellow) line top downward, it is a trigger to exit or take profit accordingly.

Sell Entry Rules

Initiate a sell order if the following chart or indicator patterns get featured:

  1. If the mixture of blue & pink lines crosses the lime line of the 7_Macd.ex4 custom indicator top downward as shown on Fig. 1.1, it is an indication that price being pressure lower i.e. a bearish signal. The grey colored histogram that is aligned below the 0.00 signal level on the 7_Macd, further supports our bearish signal.
  2. If the 2pbldeal3MA.ex4 (blue) line crosses the 2pbldeal3MA.ex4 (yellow) line top downward, it is a signal that price is being pushed lower i.e. a bearish signal.

Stop Loss for Sell Entry: Place stop loss 2 pips above short-term resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit on position(s) if the following are true:

  1. If the mixture of blue & pink lines crosses the lime line of the 7_Macd.ex4 custom indicator bottom up as shown on Fig. 1.1, an exit or take profit is advised.
  2. If the 2pbldeal3MA.ex4 (blue) line crosses the 2pbldeal3MA.ex4 (yellow) line bottom up, it is a trigger to exit or take profit accordingly.

Sell Trade Example

Fig. 1.1

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About The Trading Indicators

The 7_Macd.ex4 custom indicator is another variant of the popular MACD MT4 indicator. It is used as a trend following and a momentum indicator.

The 2pbldeal3MA.ex4 and the 2pbldeal3MA.ex4 are two moving averages that are enhanced for better price smoothing.

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