MACD Median Trend Forex Trading Strategy

The MACD Median Trend forex trading strategy produces reliable buy and sell signals in trendy currency markets.

This simple strategy is composed of 3 free powerful trading indicators. Learn the complete trade setup + see examples (buy and sell) below:

Chart Setup

MetaTrader4 Indicators: MACD_Signals.ex4 (Input Variable modified; MaSlow=36, MaSignal=7), Median.ex4 (default setting), Mega trend.ex4 (default setting)

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

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Download the MACD Median Trend Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy order if the following indicator or chart pattern gets displayed:

  1. If the mostly magenta line of the Mega trend custom indicator crosses the red and lime colored middle lines of the Median custom indicator bottom up as seen on Fig. 1.0, price is said to be pressured somewhat higher, hence a buy signal is said to be highly favored.
  2. If the sky blue or fire brick histograms of the MACD_Signals.ex4 custom indicator forms above the 0.00 signal level as depicted on Fig. 1.0, price is said to be pushed to the upside, as such a buy trigger is said to be on the horizon.

Stop Loss for Buy Entry: Place stop loss 2 pips below support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions holds sway:

  1. If the mostly magenta line of the Mega trend custom indicator crosses the red and lime colored middle lines of the Median custom indicator top downward as illustrated on Fig. 1.0 during a bullish signal, it is a trigger to exit or take profit at once.
  2. If the histograms of the MACD_Signals.ex4 custom indicator realigns during a bullish trend to form below the 0.00 level, price is said to be losing its bullish momentum, hence an exit or take profit will suffice.

Sell Entry Rules

Initiate a sell entry if the following holds preference:

  1. If the mostly red line of the Mega trend custom indicator crosses the red and lime colored middle lines of the Median custom indicator top downward as depicted on Fig. 1.1, the sentiment in the market is aid to be bearish i.e. a signal to sell the asset of choice.
  2. If the sky blue or fire brick histograms of the MACD_Signals.ex4 custom indicator align below the 0.00 signal level as shown on Fig. 1.1, price is said to be pushed somewhat lower i.e. a signal to sell the designated currency pair.

Stop Loss for Sell Entry: Place stop loss 2 pips above resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If the mostly red line of the Mega trend custom indicator crosses the red and lime colored middle lines of the Median custom indicator in a bottom up fashion as seen on Fig. 1.1 during a bearish signal, it is a trigger to exit or take profit at once.
  2. If the histograms of the MACD_Signals.ex4 custom indicator realigns during a sell signal to form above the 0.00 level, price is said to be experiencing weaning bearish momentum, hence an exit or take profit will do.

Sell Trade Example

Fig. 1.1

Free Download

Download the MACD Median Trend Forex Trading Strategy

About The Trading Indicators

The MACD_Signals.ex4 is an enhanced Moving Average Convergence Divergence oscillator with a cool visual display of histograms aligned below & above the 0.00 signal level to depict bearish/bullish trend respectively.

The Median custom indicator forms a channel with two middle lines, simply used to gauge volatility in the activity chart.

The Mega trend custom indicator is an enhanced Hull Moving Average set to a period of 144.

It does attempt to eliminate lag altogether and succeeds in enhancing smoothing alongside.

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