MACD volume combined signal forex strategy

Trading signal is especially strong in this forex strategy. It combines strength of oscillator identified high/low price- Volumes activity. Candle high low and trend identification Liquidation model is aggressive. It uses multiple entry with limited averaging condition. Each position is protected equity stop applied universally on account.

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Combine all these properties together and you get a viable trading system with verified history of profitability on historic data. Theforexkings created and expert advisor, together with this forex strategy so you can test it for yourself and adapt on the pair of your choosing. Strategy works only for one pair simultaneously.

 

Used forex tools and forex indicators

Moving average convergence divergence (MACD 500,250) Histogram is used to identify current market trend with standard approach. Histogram trending below zero – downtrend and vice versa for uptrend. Signal line of MACD will not be used in this forex strategy. Adjust MACD slow and fast period in EA inputs to modify indicators sensitivity to trend.

 

Relative strength index (RSI 5) This oscillator will provide a primary signal for strategy. RSI rising above will notify us on sell opportunity while RSI falling below 30 line will notify us about buy opportunity. Confirmation is needed to enter the trade

 

Candle signal: Candle closing below the low of previous candle for sell positions. Candle closing above the high of previous candle for buy positions.

 

Volumes signal: Signal candle surpassing previous candle high/low,must also have a higher volume (volumes forex indicator) than previous two candles. This will confirm growing activity in direction of trend and correction end.

 

Averaging condition: We open another position if it moves to loss. If trade exists, new trade must be should on better price (higher for sell, lower for buy). Risk limiting factor included in EA calculations adjust the distance in dollar loss, between the two postions. It is equity based therefore it is necessary to adjust it to the lot size (1 to 0,01 of lots used). Dollar loss between the two positions is a primary factor for EA opening a trade.

 

Equity based take profit and stop loss: The profit and loss targets are equity based. Therefore, make sure there are not other trades opened (from other strategies or other currency pair) to not confuse the calculation.

 

Max open trade: Maximum number of open trades can be adjusted. Test results provided are limited for the maximum number of 20 opened Trades. Opening more trades simultaneously can be very risky so be extremely careful.

 

Strategy works for wide spectrum of parameters. We have tested EURUSD 1H chart since 2003 with above mentioned settings with good results. Certainly there are many more parameters combinations working across all currency pairs and time frames.

 

Forex strategy rules

 

SELL

MACD trending below zero. This is considered to be a downtrend.

 

Signal:

RSI rises above 70 line.

Candle closes below the low of previous candle.

This candle closes with volume higher than each of two previous candles.

We enter the trade short on this candle close (new candle open).

If trade exists new trade can be only opened above current trade on same signal conditions.

Risk limiting factor: Loss must reach at least 1 (USD) per opened trade before entering the new trade. Adjust this number to used lot size.

  • Equity based stop loss for 0,01 lot size: 50 USD

  • Equity based take profit for 0,01 lot size : 12 USD

BUY

MACD trending above zero. This is considered to be an uptrend.

 

Signal:

RSI falls below 70 line.

Candle closes above the high of previous candle.

This candle closes with volume higher than each of two previous candles.

We enter the trade long on this candle close (new candle open).

If trade exists new trade can be only opened below current trade on same signal conditions.

Risk limiting factor: Loss must reach at least 1 (USD) per opened trade before entering the new trade. Adjust this number to used lot size.

 

Equity based stop loss for 0,01 lot size: 50 USD

Equity based take profit for 0,01 lot size : 12 USD

Get MT4 expert advisor trading this forex strategy

We recommend you to use this forex strategy with one of our trusted forex brokers

(STP/ECN with MT4 bridge).

To win you must trade with broker on your side.

 

 

Disclaimer:  Expert advisor was tested for profitability on historical data. All screen shots provided are displaying real results of the test. However past data will never guarantee future success. Every expert advisor needs to be tested properly on demo account. LIVE use only on your own risk. Read full disclaimer. TheForexKings Team does not give any financial advice. TheForexKings does not take any responsibility for any user’s investments and investment decisions. All rights reserved. Strictly for personal use.

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THEFOREXKINGS

“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. ” 

—  Marian, Proprietor of TheForexkings.com