The forex trend trading strategy with Legacy indicator and MACD is a low risk power trend strategy looking to take advantage of pullbacks in both uptrends and downtrends.
Let’s take a look how this simple strategy works.
Indicators: The Legacy Trader MT4 Indicator, MACD (default settings)
Preferred time frame(s): Any
Trading sessions: Any – London and US for the lower time frames (M1, M5, M15)
Preferred Currency pairs: Any
Example: GBP/USD Daily Chart
This trading example shows 6 profitable buy entries in an uptrend in the GBP/USD pair. Click the picture to enlarge the view.
- MACD above 0.00 level (bullish setup)
- The Legacy Trader MT4 Indicator turns from magenta (short-term bearish) dot to aqua dot (short-term bullish).
==> Initiate Buy trade.
Stop-Loss: Place stop-loss 3 pips below the most recent swing low point (support).
Targets: Risk-to-reward (2:1, i.e. risking 30 to make 60) or let the buy trade run until the next magenta dot appears on the chart.
- MACD below 0.00 level (bearish setup)
- The Legacy Trader MT4 Indicator turns from aqua (short-term bullish) dot to magenta dot (short-term bearish).
==> Initiate Sell trade.
Stop-Loss: Place stop-loss 3 pips above the most recent swing high point (resistance).
Targets: Risk-to-reward (2:1, i.e. risking 40 to make 80) or let the sell trade run until the next aqua dot appears on the chart.