There are numerous ways to which forex trading can be approached, but irrespective of the path you desire to take, you need a solid blueprint that guarantees success.
Your ability to sustain the winning tempo through your lifetime in the market will determine your accomplishment.
The MACD Trading Signals forex strategy is designed to deliver unparalleled buy and sell trade setups for any currency pair and timeframe. The strategy also tells you where to exit the trade.
A fine blend of the ForexCloud, Trix and the MACD MT4 indicator implies that signals on this strategy will be top notch as well as reliable.
MetaTrader4 Indicators: ForexCloud.ex4 (Inputs Variable Modified; TimeFrame=H4), Trix.ex4 (Default Setting), MACD (Parameters Modified; Fast EMA=16, Slow EMA=32)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day
Recommended Trading Sessions: Any (London, New York, Tokyo)
Currency Pairs: Any pair
Buy Trade Example
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the lime cloud of the ForexCloud custom indicator gets aligned somewhat below the candlesticks as depicted on Fig. 1.0, a buy trigger is said to be looming.
- If the blue & red lines of the Trix custom indicator break above the 0.00 level as shown on Fig. 1.0, price is said to be driven higher i.e. a buy alert is imminent.
- If the green histograms of the MACD MT4 indicator gets positioned above the 0.00 level (see Fig. 1.0), bulls are said to be pushing price higher, hence a buy trigger will suffice.
Stop Loss for Buy Entry: Place stop loss 3 pips below the green Forexcloud.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If a red cloud of the ForexCloud custom indicator pops up above the candlesticks during a buy signal, it is a signal to exit or take profit at once.
- If the lines (blue & red) of the Trix custom indicator dips below the 0.00 level while a buy signal is running, an exit or take profit is duly recommended.
- If the green histograms of the MACD MT4 indicator readjust below the 0.00 level while a buy alert is ongoing, an exit or take profit will do.
Sell Entry Rules
Enter a sell order if the following holds sway:
- If the red cloud of the ForexCloud custom indicator gets aligned fairly above the candlesticks as seen on Fig. 1.1, a sell trigger is said to be on the horizon.
- If the blue & red lines of the Trix custom indicator break below the 0.00 level as exemplified on Fig. 1.1, price is said to be taken lower i.e. a trigger to go short on the desired fx pair.
- If the green histograms of the MACD MT4 indicator gets placed below the 0.00 level (refer to Fig. 1.1), bears are said to be pushing price lower, hence a sell alert will do.
Stop Loss for Sell Entry: Place stop loss 3 pips above the red Forexcloud.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes to the fore:
- If a lime cloud of the ForexCloud custom indicator pops up below the candlesticks during a sell alert, it is a signal to exit or take profit immediately.
- If the lines (blue & red) of the Trix custom indicator surge above the 0.00 level while a sell signal is ongoing, an exit or take profit is duly advised.
- If the green histograms of the MACD MT4 indicator realigns above the 0.00 level while a sell alert is ongoing, an exit or take profit will suffice.
Sell Trade Example
About The Trading Indicators
The ForexCloud resembles a cloud the way it sits itself above or below price bars, offering an overall market direction.
When the cloud is red and sits above price bars, it denotes a bearish trend, while it denotes a bullish trend when it is green and sits below price bars.
The Triple Exponential Moving Average or Trix momentum indicator that was developed by Jack Hutson in the 1980’s and finds its use in the spotting of percentage change in a triple exponentially smoothed moving average.
The Moving average convergence divergence (MACD) is a trend-following momentum indicator that reveals the connection between two moving averages of price.