Trigger sensitivity is one of the keys to successful forex trading. This forex strategy uses accelerator entry signal together with default setting MACD that is proven to work best in 1 H timeframe of major currency pairs.
Accelerator oscillator does a good job of signalizing the entry only at the end of a correction. Most of the times position moves almost immediately in profit. Precise timing ensures that you avoid entering the trade before correction exhaustion, which is the most suitable entry most of the time.
MACD helps us to filter out entries against the current price momentum. Default settings of MACD indicator are with relatively fast calculation period, therefore it is able to adapt rapidly to changing market conditions
Strategy is traded in Hour timeframe of any currency pair.
Used forex indicators
MACD – moving average convergence divergence (12,26,9). MACD in this forex strategy filters out entries against the market flow. It is able to adapt fast to changed conditions.
Accelerator forex indicator – Position entry timing. Entry in the direction of MACD histogram with excellent timing. Tool is also helpful to determine stop loss. This entry is also able to provide profitable signal during the ranging market what is arguably its biggest advantage.
Forex strategy rules
For the best results, trade with professional ECN/STP broker with MT4. If you can't trade with profit. Automatically copy the traders that are already profitable.
MACD histogram is closing below zero. Trigger line (9) can be ignored. While this situation lasts we will enter only short trades.
Positive accelerator bars. Once the correction starts to get exhausted, first red positive bar appears. We enter the trade short on candle close.
Stop loss: Is placed above the high of our signal formation.
Take profit: We exit the trade on first closed green and negative accelerator bar.
MACD histogram is closing above zero. Trigger line (9) can be ignored. While this situation lasts we will enter only long trades.
Negative accelerator bars. Once the correction starts to get exhausted, first green negative bar appears. We enter the trade long on candle close.
Stop loss: Is placed below the low of our signal formation.
Take profit: We exit the trade on first closed red and positive accelerator bar.