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Adaptive MACD Forex Trading Strategy

    The adaptive MACD forex trading strategy offers traders the opportunity of enjoying reliable buy/sell forex trading signals.

    The signals are made possible through the addition of ASCTrendli.ex4 and the PA_adaptive_MACD.ex4 custom indicators.

    Chart Setup

    MetaTrader4 Indicators: ASCTrendli.ex4 (default setting), PA_adaptive_MACD.ex4 (default setting)

    Preferred Time Frame(s): 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hour

    Recommended Trading Sessions: Any

    Currency Pairs: Any

    Download

    Download the Adaptive MACD Forex Trading Strategy

    Buy Trade Example

    Fig. 1.0

    Strategy

    Long Entry Rules

    Initiate a buy in the market if the following indicator or chart patterns are in display:

    1. If a yellow upward pointing arrow of the ASCTrendli.ex4 custom indicator forms below the candlesticks, it is a signal that price is being pressured higher i.e. a signal to go bullish on the currency pair of interest.
    2. If the deep sky blue line of the PA_adaptive_MACD.ex4 custom indicator forms as shown on Fig. 1.0, it is an indication that price is being pressured to the upside i.e. a bullish signal is in place.

    Stop Loss for Buy Entry: Place stop loss 2-5 pips below support.

    Exit Strategy/Take Profit for Buy Entry

    Initiate an exit or take profit if the following indicator or chart pattern gets displayed:

    1. If a magenta downward pointing arrow of the ASCTrendli.ex4 custom indicator forms above the candlesticks as shown on Fig. 1.0, price is said to be making a U-turn away from its earlier trend i.e. a trigger to exit or take profit accordingly.
    2. If the line of the PA_adaptive_MACD.ex4 custom indicator turns “Pale Violet Red” as seen on Fig. 1.0, price is said to be experiencing a possible reversal i.e. a trigger to exit or take profit forthwith.

    Sell Entry Rules

    Initiate a sell in the market if the following rules or conditions take precedence:

    1. If a magenta downward pointing arrow of the ASCTrendli.ex4 custom indicator forms above the price bars, it is a signal that price is being pressured lower i.e. a signal to go bearish on the currency pair of interest.
    2. If the “Pale Violet Red” line of the PA_adaptive_MACD.ex4 custom indicator forms within the indicator window as shown on Fig. 1.1, it is an indication that price is being pressured to the downside i.e. a trigger to short on position(s) entered.

    Stop Loss for Sell Entry: Place stop loss 2-5 pips above resistance.

    Exit Strategy/Take Profit for Sell Entry

    Exit or take profit if the following indicator or chart patterns take precedence:

    1. If a yellow upward pointing arrow of the ASCTrendli.ex4 custom indicator forms below the candlesticks as shown on Fig. 1.1, price is said to be taking a new direction from its earlier trend i.e. a trigger to exit or take profit accordingly.
    2. If the line of the PA_adaptive_MACD.ex4 custom indicator turns “deep sky blue” while in a downtrend as seen on Fig. 1.1, price is said to be experiencing a possible reversal i.e. a trigger to exit or take profit forthwith.

    Sell Trade Example

    Fig. 1.1

    Free Download

    Download the Adaptive MACD Forex Trading Strategy

    About The Trading Indicators

    The ASCTrendli.ex4 custom indicator uses its colored arrow (yellow and magenta) to depict trend direction (bullish and bearish).

    The phase accumulation adaptive MACD custom indicator might not be a grail but its signal are good, as it shows the relative strength of forex pairs, following its two times adaptive nature.