MACD + DeMarker Forex strategy

Undoubtedly, there is a strength in simplicity. With this forex strategy we simply enter the position using DeMarker forex indicator, once we identify trend using MACD (moving average convergence divergence). Fractals are used a simple guide for stop loss placement. Position is only closed after we take advantage of whole trend.

 

Used forex indicators:

MACD (moving average convergence divergence) with period 20,45,9

DeMarker (DeM) forex indicator, period (7)

Fractals (standard settings

 

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Forex strategy rules

 

Buy:

MACD crosses from negative to positive values – above zero. This will signalise potential beginning of new uptrend.

As a second step, we look for DeM to fall below 0,3 line. This will signalise oversold conditions within uptrend.

We enter trade long after first closed UP (bullish) candle.

We place stop loss at last fractal down (bullish fractal). We do not place stop loss at low marked by fractal but literally at top of it.

Exit:

We exit the position once the MACD falls below 0 signalising downtrend.

 

SELL:

MACD falls from positive to negative values – below zero. This will signalise potential beginning of new downtrend.

As a second step, we look for DeM to rise above 0,7 line. This will signalise overbought conditions within downtrend

We enter trade short after first closed down (bearish) candle.

We place stop loss at last fractal up (bearish fractal). We do not place stop loss at high marked by fractal but literally at top of it.

Exit:

We exit the position once the MACD rises above 0 signalising uptrend.

 

 

 

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