OsMACD Forex Trading Strategy

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:

  1. 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.
  2. 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:

  1. 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.
  2. 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:

  1. 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.
  2. 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:

  1. 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.
  2. 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

Free Download

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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.

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