Rads MACD Forex Trading Strategy

The Rads MACD forex trading strategy offers a long term forex trading plan that can generate consistent profits.

The strategy is designed to be quite simple and powerful at the same time.

The system is designed based on some of the most powerful trading methods i.e. trend following.

Chart Setup

MetaTrader4 Indicators: RainbowMMA_04.ex4 (default setting), Rads_MACD.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

Download

Download the Rads MACD Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets displayed:

  1. Watch for price trading above the pink lines of the RainbowMMA_04 custom indicator as depicted on Fig. 1.0, this setup is indicative of price being pressured to the upside i.e. a signal to go long on the currency of focus.
  2. If the histograms (starting off as lime and then red) of the Rad_MACD.ex4 custom indicator forms above the 0.00 level, the sentiment in the market is said to be bullish i.e. a signal to buy the asset of interest.

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 rules or conditions takes precedence:

  1. If price opens and closes below the pink lines of the RainbowMMA_04 custom indicator (refer to Fig. 1.0), price is said to be taking a dive, as such an exit or take profit is advised.
  2. If a red histogram of the Rads_MACD.ex4 custom indicator forms below the 0.00 signal level, it is an indication of a looming bearish trend, hence a trigger to exit or take profit without delay.

Sell Entry Rules

Enter a sell in the market if the following holds sway:

  1. Watch for price trading below the pink lines of the RainbowMMA_04 custom indicator as seen on Fig. 1.1, this setup is indicative of price being pressured to the downside i.e. a signal to go short on the currency of focus.
  2. If the histograms (starting off as red and possibly lime) of the Rad_MACD.ex4 custom indicator forms below the 0.00 level, the sentiment in the market is said to be bearish i.e. a signal to sell the asset of interest.

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 price candlestick/indicator setup gets displayed:

  1. If price opens and closes above the pink lines of the RainbowMMA_04 custom indicator (refer to Fig. 1.1), price is said to be making an upward push, as such an exit or take profit is advised.
  2. If a lime histogram of the Rads_MACD.ex4 custom indicator forms above the 0.00 signal level, it is an indication of an impending bullish trend, hence a trigger to exit or take profit straight away.

Sell Trade Example

Fig. 1.1

Free Download

Download the Rads MACD Forex Trading Strategy

About The Trading Indicators

The Rads_MACD.ex4 is an enhanced Moving Average Convergence Divergence (MACD) indicator that is used in spotting changes in momentum, direction strength and duration of a trend in a currency pair’s price.

The RainbowMMA_04.ex4 custom indicator is the fourth GMMA forex series of eleven technical indicators largely dependent on the Guppy multi moving average.

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