MACD Hull Forex Trading Strategy
The MACD Hull Forex Trading Strategy is made up of the extremely popular MACD indicator and the Hull trend indicator.
The Hull indicator gives us trend direction and exit signals while the MACD looks for trade entries.
The buy and sell trade setup is pretty simple, yet effective:
MetaTrader4 Indicators: Hull Trend.ex4 (Inputs Variable Modified; HMA_Period=50), MACD (Parameters Modified; Slow EMA=36)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day
Recommended Trading Sessions: Any
Currency Pairs: Any pair
Buy Trade Example
Long Entry Rules
Enter a buy order if the following indicator or chart pattern gets puts on display:
- If the blue bars of the Hull Trend custom MT4 indicator gets put on display as seen on Fig. 1.0, price is said to be taken higher i.e. a signal to go long on the selected currency pair.
- If the dark green histogram of the MACD MT4 custom indicator breaks above the 0.00 level as depicted on Fig. 1.0, the overall market sentiment is said to be bullish i.e. a trigger to buy the stipulated currency pair.
Stop Loss for Buy Entry: Place stop loss 2-5 pips below short-term support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If the Hull Trend custom MT4 indicator displays a red bar while a buy trend is ongoing, it is an indication of weaning bulls power i.e. a trigger to exit or take profit without delay.
- If the MACD MT4 indicator forms a dark green histogram that is aligned below the 0.00 level, price is said to be making a possible U-turn away from its earlier bullish stance, hence an exit or take profit will suffice.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the red bars of the Hull Trend custom MT4 indicator pops up as shown on Fig. 1.1, price is said to be driven lower i.e. a signal to go short on the currency pair of focus.
- If the dark green histogram of the MACD MT4 custom indicator breaks below the 0.00 level as illustrated on Fig. 1.1, the general market sentiment is said to be bearish i.e. a trigger to sell the designated currency pair.
Stop Loss for Sell Entry: Place stop loss 2-5 pips above short-term resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the Hull Trend custom MT4 indicator displays a blue bar while a sell trend is running, it is an indication of halting bears power i.e. a trigger to exit or take profit forthwith.
- If the histograms of the MACD MT4 indicator readjust to form above the 0.00 level, price is said to be making a possible reversal away from its prior bearish stance, hence an exit or take profit will do.
Sell Trade Example
The Hull Trend custom indicator is an oscillator that is a popular trend following technical study and is based on the moving average 20.
The MACD is an oscillator that combines the Fast EMA (12), Slow EMA (26) and the SMA (9) in one technical study.
Developed by Gerald Appel in 1979, Mac D, as it is also called is a common and multipurpose tool deployed in identifying and following strong trends, and also spotting trend reversals.