MACD Forex Scalping Trading Strategy

Scalping is designed to allow us enter and close trades within a short period of time, but can be challenging if not properly mastered.

A trader who wishes to scalp must possess discipline and trading focus.

The MACD Forex Scalping trading strategy will expose you to less risk, help you wade off greed, allow you place numerous trades every day, while opening you up to more profitable short-term trading opportunities.

The ForexOFFTrend, MACD and WildersDMI MT4 indicators are carefully tweaked to deliver on trend scanning, early detection of trend changes and volatility gauging respectively.

Chart Setup

MetaTrader4 Indicators: ForexOFFTrend.ex4 (Inputs Variable Modified; SSP=11), MACD (Default Settings), WildersDMI.ex4 (Inputs Variable Modified; DMI_Length=28, ADXMode=0, ADXRMode=0, VisualMode=0)

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

Recommended Trading Sessions: London, New York, Tokyo

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

Download

Download the MACD Forex Scalping 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 ForexOFFTrend custom indicator intersect red line in a bottom up manner as depicted on Fig. 1.0, price is said to be driven to the upside i.e. a trigger to go long on the fx pair of interest.
  2. If the green histograms of the MACD MT4 indicator gets aligned above the 0.00 level as exemplified on Fig. 1.0, a bullish trend is said to be looming, as such a buy alert will do.
  3. If the lime line of the WildersDMI custom indicator break above the tomato line as shown on Fig. 1.0, price is said to be driven higher i.e. a buy signal is imminent.

Stop Loss for Buy Entry: Place stop loss 1 pip below short-term support.

Exit Strategy/Take Profit for Buy Entry

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

  1. If the blue line of the ForexOFFTrend custom indicator cuts across the red line to hover above it as illustrated on Fig. 1.0, an exit or take profit is recommended.
  2. If green histograms of the MACD MT4 indicator realigns to form below the 0.00 level, bulls power is said to be weaning, as such an exit or take profit will suffice.
  3. If the lime line of the WildersDMI custom indicator cuts through the tomato line to stay below it while a buy alert is running, an exit or take profit is rightly advised.

Sell Entry Rules

Enter a sell order if the following holds sway:

  1. If the blue line of the ForexOFFTrend custom indicator intersect red line in a top downward fashion as shown on Fig. 1.1, price is said to be driven lower i.e. a trigger to go short on the fx pair of focus.
  2. If the green histograms of the MACD MT4 indicator gets aligned below the 0.00 level as seen on Fig. 1.1, a bearish trend is said to be on the horizon, as such a sell alert will suffice.
  3. If the tomato line of the WildersDMI custom indicator surge above the lime line as illustrated on Fig. 1.1, price is said to be taken lower, hence a trigger to go short on the fx pair immediately.

Stop Loss for Sell Entry: Place stop loss 1 pips above short-term resistance.

Exit Strategy/Take Profit for Sell Entry

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

  1. If the blue line of the ForexOFFTrend custom indicator cuts through the red line to stay below (refer to Fig. 1.1), an exit or take profit is advised.
  2. If green histograms of the MACD MT4 indicator readjust to form above the 0.00 level during a sell signal, bears power is said to be halting, as such an exit or take profit will do.
  3. If the tomato line of the WildersDMI custom indicator cuts through the lime line to stay below it during a sell signal, an exit or take profit is rightly recommended.

Sell Trade Example

Fig. 1.1

Free Download

Download the MACD Forex Scalping Trading Strategy

About The Trading Indicators

The ForexOFFTrend.ex4 custom indicator is a trend indicator that is built on two moving average lines, where its crosses are seen as a nod to go bullish or bearish as the case may be.

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

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

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

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