To earn money quickly in the foreign exchange market, a lot of people today are rapidly becoming day traders.
You absolutely do not need to become a financial prodigy in order to become successful when day trading.
What you need is the right forex trading strategy in order to overcome market failures.
The MACD Line Update forex trading strategy is designed to be simple and effective, allowing currency day trader’s view charts in a more summarizing manner.
The indicator duo of ForexLine_update_03 and MACD are a perfectly fit, allowing traders benefit from their characteristic properties of trend seeking and price reversal respectively.
Let’s see how things stack up.
MetaTrader4 Indicators: ForexLine_update_03.ex4 (Default Setting), MACD.ex4 (Default Setting)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour
Recommended Trading Sessions: Any (London, New York, Tokyo)
Currency Pairs: Any pair
Buy Trade Example
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the line of the ForexLine_update_03 custom indicator turns blue and gets aligned somewhat below the candlesticks as seen on Fig. 1.0, the overall sentiment is said to be bullish i.e. a trigger to buy the currency pair of focus.
- If the silver histograms of the MACD indicator gets placed above the 0.0 level as seen on Fig. 1.0, bulls are said to be taking the day, as such a buy alert is looming.
Stop Loss for Buy Entry: Place stop loss below support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If while a buy signal is running, the line of the ForexLine_update_03 custom indicator turns red, it is an indication of weaning bulls power, as such an exit or take profit will do.
- If the silver histogram of the MACD indicator breaks below the 0.00 level during a buy signal, an exit or take profit is advised.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the line of the ForexLine_update_03 custom indicator turns red and gets aligned fairly above the candlesticks as shown on Fig. 1.1, the overall sentiment is said to be bearish i.e. a trigger to sell the currency pair of interest.
- If the silver histograms of the MACD indicator gets placed below the 0.0 level as depicted on Fig. 1.1, bears are said to be having an upper hand during the session, as such a sell alert is on the horizon.
Stop Loss for Sell Entry: Place stop loss above resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes to the fore:
- If while a sell signal is ongoing, the line of the ForexLine_update_03 custom indicator turns blue, it is an indication of halting bears power, as such an exit or take profit will suffice.
- If the silver histogram of the MACD indicator surges above the 0.00 level during a sell alert, an exit or take profit is recommended.
Sell Trade Example
About The Trading Indicators
The ForexLine_update_03 is a trend following line indicator that changes color based on the prevalent market trend (blue for bulls and red for bears).
The Moving average convergence divergence (MACD) is a trend-following momentum indicator that reveals the connection between two moving averages of price.