Dynamic Easy MACD Forex Trading Strategy

To keep up with a consistent profit margin, simplicity mustn’t be overlooked, considering that it is an essential long-term ingredient for growth in the financial market.

I’ve seen a lot of forex market participants get hooked to complex and expensive trading methods that simply do not work.

The Dynamic Easy MACD forex trading strategy employs the power of simplicity to trade currencies.

The strategy produces positive results in the long-term.

Chart Setup

MetaTrader4 Indicators: Dynamic_Price_Channel.ex4 (Inpuuts Variable Modified; Tunnel_Period=28), easy-forex-system.ex4 (Colors Modified; #=Magenta, #1=None, #2=None, Colors Width Modified; #0=2), MACD.ex4 (Default Parameters)

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

Download

Download the Dynamic Easy MACD 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 put on display:

  1. If the yellow line of the Dynamic_Price_Channel custom indicator cuts across the magenta line of the easy-forex-system MT4 indicator bottom up as depicted on Fig. 1.0, price is said to be taken higher i.e. a signal to buy the stipulated currency pair.
  2. If the dark green histograms of the MACD MT4 indicator gets positions above the 0.00 signal level as described on Fig. 1.0, the prevalent market sentiment is said to be bullish, hence a signal to go long.

Stop Loss for Buy Entry: Place stop loss below medium-term support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes center stage:

  1. If price is seen to close below the yellow line of the Dynamic_Price_Channel custom indicator during a bullish signal (refer to Fig. 1.0), an exit or take profit will suffice.
  2. If the dark green histograms of the MACD MT4 indicator readjust to form below the 0.00 level, an exit or take profit will suffice.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the yellow line of the Dynamic_Price_Channel custom indicator cuts through the magenta line of the easy-forex-system MT4 indicator top downward as illustrated on Fig. 1.1, price is said to be pushed lower i.e. a signal to go short on the select fx pair.
  2. If the dark green histograms of the MACD MT4 indicator gets placed below the 0.00 signal level as seen on Fig. 1.1, the prevalent market sentiment is said to be bearish, hence a signal to go short.

Stop Loss for Sell Entry: Place stop loss above medium-term resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If price is seen to close above the yellow line of the Dynamic_Price_Channel custom indicator during a sell alert as shown on Fig. 1.1, an exit or take profit will do.
  2. If the dark green histograms of the MACD MT4 indicator realigns to form above the 0.00 level, an exit or take profit will is recommended.

Sell Trade Example

Fig. 1.1

Free Download

Download the Dynamic Easy MACD Forex Trading Strategy

About The Trading Indicators

The Dynamic_Price_Channel indicator is a technical tool that can be used to gauge volatility alongside trend.

The Easy-forex-system custom indicator aids traders in determining the directional bias for a specific forex pair within a given time frame. The indicator is comprised of three smoothed moving averages.

The Moving average convergence divergence (MACD) on the other hand is a trend-following momentum indicator that reveals the connection between two moving averages of price.

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