Sometimes, all you need to profit in forex is absolute simplicity. But that is not the only thing you need to succeed . You also cant get greedy. Using equal stop loss and take profit is one of those methods to keep traders greed at bay. Market makers do not want you to use equal stop loss and take profit. Why? Because using this method, you can never get really emotional about trade – you can't behave like a sheep in the crowd. You are simply not engaged enough, because you know that single trade never really matters.
This strategy is simply a game of numbers and statistical edge, using MACD. Why it works ? MACD is used by in EAs that are used by institutions managing a massive amount of capital (smart money).
This forex strategy uses a trend to its advantage. It removes emotions from the equation. It isn't stressful. In unfavorable market conditions it is never wiped out as some of the others , safe systems,. It is really easy to trade.
Used forex indicators
MACD (Moving average convergence divergence) 26,48,9
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MACD histogram above zero.
Fast MACD line (period 9, red) is within the histogram bar. Histogram bar closed above red MACD line.
Bullish candle close. We enter on clear bullish candle close.
Stop loss: Low of the bullish candle.
Take profit: First bullish candle that closes in profit.
MACD histogram below zero.
Fast MACD line (period 9, red) is within the histogram bar. Histogram bar closed below red MACD line.
We enter on clear bearish candle close.
Stop loss: High of the bearish candle.
Take profit: First bearish candle that closes in profit.