Our human emotions are just too edgy when confronting the forex market, as such there’s urgent need for you to enter the market with a solid plan, one that is devoid of emotions.
The grand plan is to stay profitable at the long run and the 2 Line MACD Oscillator forex trading strategy will help you achieve just that.
The setup are plain and just about anyone will be able to quickly adopt them and quickly plug them into their trading toolbox.
Chart Setup
MetaTrader4 Indicators: Urovny.ex4 (Default Setting), 2line_MACD.ex4 (Input Variable Modified; FastMAPeriod=18, SlowMAPeriod=36, SignalMAPeriod=12)
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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Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Initiate a buy entry if the following indicator or chart setup gets put on display:
- If the blue line of the 2line_MACD custom MT4 indicator breaks above the 0.00 level as seen on Fig. 1.0, the market sentiment is believed to be somewhat bullish i.e. a signal to buy the designated forex pair.
- If price closes above the upper red line of the Urovny custom indicator as illustrated on Fig. 1.0, price is said to be pushed to the upside i.e. a signal to buy the currency pair of focus.
Stop Loss for Buy Entry: Place stop loss 1 pip below support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes preference:
- If during a buy alert, the blue line of the 2line_MACD custom MT4 indicator intersects the red dotted line in a top downward fashion (refer to Fig. 1.0), bulls power is said to be weaning, as such an exit or take profit will suffice.
- Wait for price to decline to an extent where it is seen to close below the upper red line of the Urovny custom indicator, to confirm an exit or take profit.
Sell Entry Rules
Enter a sell position if the following holds true:
- If the blue line of the 2line_MACD custom MT4 indicator dips below the 0.00 level as depicted on Fig. 1.1, a bearish trend is said to be looming, hence a trigger to sell the specified fx pair.
- If price closes below the lower green yellow line of the Urovny custom indicator as seen on Fig. 1.1, price is said to be pushed to the downside i.e. a signal to sell the currency pair of interest.
Stop Loss for Sell Entry: Place stop loss 1 pip above resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the blue line of the 2line_MACD custom MT4 indicator intersects the red dotted line in a bottom up manner as shown on Fig. 1.1, bears power is said to be halting, hence an exit or take profit will do.
- If price surges to close above the lower green yellow Urovny custom indicator line, it is an exit or take profit confirmation.
Sell Trade Example
Fig. 1.1
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About The Trading Indicators
The Urovny custom indicator is an indicator that appears as a double line (red and green yellow), usually acting as support or resistance to price, depending on how it is aligned in relation to price (above or below).
The 2line_MACD custom indicator is a popular forex indicator that is comprised of three vital components i.e. MACD 12-period exponential moving average (12 EMA), 26 period EMA MACD histogram and the MACD signal line (9-period exponential moving average of the MACD).