MACD and Bollinger bands swing FOREX strategy

This forex strategy utilizes MACD for trend identification and Bollinger bands as a method of establishing the range. Once the range breakout occurs in the direction of main trend, we enter the position. We are looking for a trade with profit about 2 – 10 times bigger than average loss (RRR 1:2 – 1:10).

Used forex indicators

MACD (moving average convergence divergence) 48,104,9

Bollinger bands forex indicator - default settings

Apply both indicators in 1 h chart of EURUSD or any major currency pair.

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Forex strategy rules:


MACD histogram closing below zero line (central line). Signalizing downtrend.

  • First trigger: Price touches upper Bollinger band.

  • Second trigger: Price penetrates bottom BB. We enter the trade short on first candle closing below bottom BB.

Stop loss: Placed 1 pip above highest price reached in first trigger.

Take profit: MACD histogram closes above zero line.


MACD histogram closing above zero line (central line). Signalizing uptrend.

  • First trigger: Price touches bottom Bollinger band.

  • Second trigger: Price penetrates upper BB. We enter the trade long on first candle closing above upper BB.

Stop loss: Placed 1 pip below lowest price reached in first trigger.

Take profit: MACD histogram closes below zero line.

Notes: We always take first signal after MACD reversal. If it fails, strategy allows entering once more at next signal (to the same direction). This forex strategy takes only a few trades, therefore it can be used on more than one currency pair simultaneously.



“Trading FOREX since 2006. Full time trader and web developer since 2013. My two biggest hobbies are trading and web development. In TheForexKings I managed to connect both of them. Even after 12 years of trading I still have the same passion for the market as at the beginning. The aspect I enjoy the most : development and testing of new ideas.” 


Only in 2016 - 2017 we have created more than 400 forex strategies. During this period we have also developed and published +200 MT4 Expert advisors based on those strategies. We are dedicated to provide you with viable and complete trading systems that have thrived in extensive historical testing. We want to give you complete and transparent trading solutions, that once mastered ,will set you financially free. We want to give you a fighting and winning chance in the market. ” 

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