The OsMACD strategy is a unique FX trading system that integrates the OsMACD.ex4 custom indicator and the rsi_ma_trade_ist_chart.ex4 MT4 indicator. You can apply this strategy to all timeframe’s.
It requires just adding these custom indicators to your Metatrader 4 chart and monitor as the setup develops. Learn the rules to buy and sell currency pairs below.
Chart Setup
MetaTrader4 Indicators: OsMACD.ex4 (default setting), rsi_ma_trade_ist_chart.ex4 (default setting)
Preferred Time Frame(s): 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hour, Daily
Recommended Trading Sessions: Any
Currency Pairs: All major pairs + cross pairs
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Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Initiate a buy entry if the following conditions or rules apply:
- If the blue line of the rsi_ma_trade_ist_chart.ex4 indicator crosses the lime and red lines bottom up, with price opening and closing above the blue line of the rsi_ma_trade_ist_chart.ex4 custom indicator, price is said to be pressured higher i.e. a bullish trend. Also watch out for a blue upward pointing arrow of the rsi_ma_trade_ist_chart.ex4 indicator aligned below price bars as a signal to go long on the pair of interest.
- If the blue dots plus histogram align above the 0.00 signal level on the OsMACD.ex4 custom indicator window, it is an indication that price is bearish i.e. a buy signal.
Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit on position(s) if the following indicator or chart patterns are on display:
- If the blue line of the rsi_ma_trade_ist_chart.ex4 indicator crosses the lime and red lines top downward as seen on Fig. 1.0, with price closing below the blue line of the rsi_ma_trade_ist_chart.ex4 custom indicator, an exit or take profit is advised.
- Red histograms forming on the OsMACD.ex4 custom indicator indicates bearish sentiment, if it aligns below the 0.00, an exit or take profit is appropriate.
Sell Entry Rules
Enter a sell order if the following conditions or rules are correct:
- If the blue line of the rsi_ma_trade_ist_chart.ex4 indicator crosses the lime and red lines top downward as shown on Fig. 1.1, with price opening and closing below the blue line of the rsi_ma_trade_ist_chart.ex4 custom indicator, a sell position is in order. A red downward pointing arrow above price bars is also indicative of a sell alert.
- If red histograms plus red dots of the OsMACD.ex4 custom indicator aligns below the 0.00 signal, it is a signal to go short i.e. a sell signal.
Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit on position(s) if the following are true:
- If the blue line of the rsi_ma_trade_ist_chart.ex4 indicator crosses the lime and red lines bottom up, with price closing above the blue line of the rsi_ma_trade_ist_chart.ex4, an exit or take profit is advised.
- If blue histograms along with blue dots forms above the 0.00 signal level on the OsMACD.ex4 custom indicator, an exit is advised.
Sell Trade Example
Fig. 1.1
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About The Trading Indicators
The OsMACD.ex4 custom indicator integrates the colored Moving Average of Oscillator (OsMA) and the Moving Average Convergence/Divergence (MACD) indicators in one package.
The rsi_ma_trade_ist_chart.ex4 custom indicator incorporates both the Exponential Moving Averages and the Relative Strength Index (RSI).
The indicator consists of a red, lime and a blue line that are plotted on the chart, while also displaying blue arrows (below price bars) and red arrows (above price bars), to depict bullish and bearish signals respectively.