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Simple Forex Trading Strategy of MACD Indicator - Forex Function

Simple Forex Trading Strategy of MACD Indicator

Last Update: 30 December,2016
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This simple forex trading strategy is based on MACD indicator. With the help of this indicator, traders can find buy and sell entry very easily. MACD indicates market momentum which is key for taking entry in the direction of trend. If you can read MACD indicator, then you can gain from this simple strategy.

Required Indicator:

1. MACD

Buy Setup Rules:

✔MACD indicator must cross 0.0 level from below to above.
✔Market price should be on bullish momentum
✔After confirmation, take buy entry after formation of bullish candle.

Example of Buy Setup:



simple_macd_trading_strategy

In the above picture, we can see MACD crosses 0.0 level in the upper direction and formed bullish candle. Thus we can get simple trading buy setup

Sell Setup Rules:

✔MACD indicator must cross 0.0 level from above to below.
✔Market price should be on bearish momentum
✔After confirmation, take sell entry after formation of bearish candle.

Example of Sell Setup:



simple_macd_forex_trading_strategy

In the above picture, we can see MACD crosses 0.0 level towards downsie and formed bearish candle. Thus we can get simple trading sell setup

Time frame:

Any time frame, h1, h4 is good for big profit.

Take profit and stop loss:

Take profit for this strategy can be varied with the time frame. If you use h1 time frame, then TP will be 40-100 pips. For h4, TP will be 60-200 pips.
Stop loss will be near to swing level as shown on above examples.

Risk warning:

This strategy is made for trendy pair. So in ranging market, you can't apply this strategy. Before using this strategy, you need to follow tight money management.


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