Trend Following + MACD = EZ?

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1

Hello, 'ello!

Just your friendly Forex Newbie posting for the second time here.

Have a quick trading system that I like to use and thought I’d share with the community.

Here are the steps.

  1. Pick a pair any pair.

  2. Choose a timeframe any timeframe.

  3. Put a 200 EMA on your chart.

  4. Put a MACD indicator on your chart.

  5. If price is above the 200 EMA, wait for a bullish MACD crossover and execute a trade on the first confirmation candle.

  6. If the price is below the 200 EMA, wait for a bearish MACD crossover and execute a trade on the first confrimation candle.

  7. Set your stop loss to 1% and your take profit to 1.5% to 2%. (Preferably, set your position size so that 1% loss is just slightly below the confirmation candle or previous swing low/high.)

  8. Take only 1 or 2 trades a day.

This strategy seems to work quite well during the London and New York sessions. I NEVER touch the Asian session or any time past 4pm GMT as I always lose money.

Please let me know what you think, I will post some screenshots of some examples.

2 Likes
2

Try a MACD setting of 3-10-16. It’s been regarded as providing earlier signals during backtesting than the standard setting…

3

Mate, this might have just changed the game entirely…

4

There are many forex indicators like MACD and RSI. You won’t be able to find the one for you until you try out different indicators. You will have to test different indicators in different market situations to find the one that fits your trading style. It might even take some time for you to determine which indicator works the best.

5

Oh yes, MACD is quite a good indicator I’ve tried and used so far. You should definitely give it a try and chalk out your strategy around it. See if it helps on your demo account first though. Meanwhile, I’d like to give your strategy a try too. Let’s see how this pans out.