MACD RSI Forex Strategy

Our utmost priority in trading is being able to spot a trend, because that is where the bulk of profits is being made.

Once you can repeat this success formula, it means you’re on the road to an enjoyable currency trading career.

The MACD RSI forex strategy is specifically designed to spot profitable trends more early with the help of the MACD and the RSI indicator.

Learn how to spot tradable buy/sell setups with this strategy:

Chart Setup

MetaTrader4 Indicators: uSoho_Ichi_Average.ex4 (Default Setting), MACD (Default Setting), Relative Strength Index (Parameters Modified; Period=28)

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

Recommended Trading Sessions: Any

Currency Pairs: Any pair

Download

Download the MACD RSI Forex 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 sandy brown cloud of the uSoho_Ichi_Average.ex4custom indicator gets aligned below price bars as seen on Fig. 1.0, price is said to be driven higher i.e. a signal to buy the currency pair of focus.
  2. If the green histograms of the MACD MT4 indicator break above the 0.00 level as depicted on Fig. 1.0, a buy alert is said to be looming.
  3. If the dodger blue line of the RSI indicator break above the 50.00 level as exemplified on Fig. 1.0, it is a signal to go long on the designated currency pair.

Stop Loss for Buy Entry: Place stop loss below trading support.

Exit Strategy/Take Profit for Buy Entry

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

  1. If price closes below the sandy brown cloud of the uSoho_Ichi_Average.ex4custom indicator, bulls’ power is said to be weaning i.e. a trigger to exit or take profit at once.
  2. If the green histograms of the MACD MT4 indicator realigns below the 0.00 level during a buy signal, it is a trigger to exit or take profit immediately.
  3. If the dodger blue line of the RSI MT4 indicator dips below the 50.00 level, a bearish reversal is said to be underway, as such an exit or take profit will suffice.

Sell Entry Rules

Enter a sell order if the following holds sway:

  1. If the thistle cloud of the uSoho_Ichi_Average.ex4custom indicator gets aligned above price bars as shown on Fig. 1.1, price is said to be pushed lower i.e. a signal to sell the forex pair of interest.
  2. If the green histograms of the MACD MT4 indicator break below the 0.00 level as illustrated on Fig. 1.1, a sell alert is said to be imminent.
  3. If the dodger blue line of the RSI indicator dip below the 50.00 level as shown on Fig. 1.1, it is a signal to go short on the selected fx pair.

Stop Loss for Sell Entry: Place stop loss above trading resistance.

Exit Strategy/Take Profit for Sell Entry

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

  1. If price closes above the thistle cloud of the uSoho_Ichi_Average.ex4custom indicator (see Fig. 1.1), bears’ power is said to be halting i.e. a trigger to exit or take profit forthwith.
  2. If the green histograms of the MACD MT4 indicator readjust above the 0.00 level while a sell alert is running, it is a trigger to exit or take profit straightaway.
  3. If the dodger blue line of the RSI MT4 indicator surges above the 50.00 level, a bullish reversal is said to be in progress, as such an exit or take profit will do.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The uSoho_Ichi_Average.ex4 custom indicator is an Ichimoku with moving average as a substitute for the middle of price channel (Donchian Channel).

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

The Relative Strength Index, also referred to as the RSI, is a technical tool that measures overbought and oversold market conditions.

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