Daily Chart MACD Forex Trading Strategy

The Daily Chart MACD forex trading strategy is a mechanical swing trading system that delivers unique buy and sell FX signals.

It provides you greater staying power in the market, since it runs on a higher time frame (1-Day chart).

This means you can stay longer in the market, as such increasing your chances of making big profits.

Chart Setup

MetaTrader4 Indicators: Tipu_MACD.ex4 (default setting), PRSI_PCCI.ex4 (Input Variable modified; RSI Period = 28, CCI Period = 28, PRSI = 28, PCCI Period = 28)

Preferred Time Frame(s): Daily chart

Recommended Trading Sessions: Any

Currency Pairs: Any pair

Download

Download the Daily Chart MACD Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy      

Long Entry Rules

Initiate a buy entry of the following holds true on the activity chart:

  1. If royal blue line along with the histograms of the PRSI_PCCI custom indicator align above the 0.00 signal level as shown on Fig. 1.0, price is said to be pressured to the upside i.e. a signal to buy the pair of interest.
  2. The Tipu_MACD.ex4 custom indicator yields three unique signals to denote a bullish trend i.e. the turquoise colored upward pointing arrow that is aligned below the candlesticks, the histograms that align above the 0.00 signal level and the Tipu_MACD.ex4 line intersection in the region below the 0.00 signal level as shown on Fig. 1.0. These three pointers gives traders a vivid clue to a developing bullish trend.

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

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following indicator or chart pattern takes center stage:

  1. If royal blue line along with the histograms of the PRSI_PCCI custom indicator declines to break below the 0.00 signal level during an uptrend, it is an indication of weaning bulls pressure, hence an exit or take profit is recommended.
  2. The Tipu_MACD.ex4 will display the following patterns as a signal to exit or take profit; a red downward pointing arrow forms above price bars, the lines of the Tipu_MACD.ex4 crosses in the region above the 0.00 signal level and a histogram (most likely a red colored histogram) forms below the 0.00 signal level.

Sell Entry Rules

Enter a sell order if the following holds sway:

  1. If royal blue line along with the histograms of the PRSI_PCCI custom indicator align below the 0.00 signal level, the market sentiment is somewhat bearish, hence a sell signal.
  2. The Tipu_MACD.ex4 custom indicator delivers three unique signals to illustrate a bearish trend i.e. the red colored downward pointing arrow that is aligned above the candlesticks, the histograms that align below the 0.00 signal level and the Tipu_MACD.ex4 lines intersection in the region above the 0.00 signal level as shown on Fig. 1.1. These three pointers gives traders a vivid clue to a developing bearish trend.

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

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following rules or conditions are true:

  1. If royal blue line along with the histograms of the PRSI_PCCI custom indicator spikes to break above the 0.00 signal level during downtrend, it is an indication of weaning bears pressure, hence an exit or take profit is advised.
  2. The Tipu_MACD.ex4 will display the following patterns as an exit or take profit trigger; a turquoise upward pointing arrow forms below price bars, the lines of the Tipu_MACD.ex4 crosses in the region below the 0.00 signal level and a histogram (most likely green colored) forms above the 0.00 signal level.

Sell Trade Example

Fig. 1.1

Free Download

Download the Daily Chart MACD Forex Trading Strategy

About The Trading Indicators

The Tipu_MACD.ex4 is a momentum oscillator and quite a popular one in the market. It is based on the MACD oscillator that was devised by Gerald Appel in the late 1970s.

It offers information on trend and momentum.

The PRSI_PCCI custom indicator is a technical study that is based on the CCI and RSI indicator.

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