MACD is one of the simplest and reliable mt4 indicator which is used many traders in different strategies. In this trading system, MACD is used to get reversal signals. Only MACD has been used in this strategy which makes this strategy simple and easy to find trading signals.
1. MACD indicator Click here for MACD indicator setup process
Buy Setup Rules
✪ MACD needs to start above 0.0 level
✪ MACD lines need to be crossover in the upside direction.
✪ When crossover happens, open buy positions.
✪ Take profit will be 30-80 pips for buy entry.
✪ Stop loss will be 30-50 pips for buy entry.
✪ SL can be set below near term support level.
Sell Setup Rules
✪ MACD needs to start below 0.0 level
✪ MACD lines need to be crossover in the downside direction.
✪ When crossover happens, open sell positions.
✪ Take profit will be 30-80 pips for sell entry.
✪ Stop loss will be 30-50 pips for sell entry.
✪ SL can be set below near term resistance level.
Buy/Sell Setup Examples
In the above GBPUSD H4 chart, we can see that MACD crossover happened and was below the 0.0 level in the first setup. Market price moved around 200 pips.
This strategy is helpful in volatile market not in ranging condition. You also need to follow money management during using this strategy. Before using this strategy on live account, you can test this on demo account.
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