MACD scalping forex strategy

This forex strategy doubles up on MACD indicator to properly identify trend. Not only the current trend, but also the trend in long term perspective. Once it gets the edge by establishing which side of the market to trade on, it enters the trade on properly timed CCI signal. Not immediately. Only after correction exhaustion. Strategy can be used both for scalping and steady day trading in forex.

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Strategy was tested on historical data of EURUSD since 2003 with profitable results. This is also one of those forex strategies that can work very well as a scalper, even though it has been tested as a day trading system. The expert advisor is proved freely so you are welcomed to test it both as a scalper and as a day trading system.

 

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.

 

Used tools and indicators

 

Following settings were used to achieve test results published in the screen shots. There are 1000+ more profitable settings for this strategy according to optimization data.

 

Moving average convergence divergence (MACD histograms). Combination of two MACD histograms (1000,2000,9 and 250,500) is used to determine the major and current trend. Faster histogram will react much faster to the market reversal. This will protect our profits at the end of the trend. Both MACD histograms can be adjusted in EA inputs. You can adjust the expert for any currency pair and timeframe.

 

Commodity channel index. CCI signal (25). CCI with standard calculation period is used. Strategy doesn't enter the trade immediately upon CCI entering overbought/oversold zone. Instead, it waits patiently for it to return back within the neutral zone (below 100 above -100). Entry is triggered only by the candle close.

 

Break even conditions. After the position reaches the predetermined profit. Stop loss is placed on price of entry. This will avoid possibility of profitable position turning loser.

 

Forex strategy rules

SELL

 

Both MACD histograms trending below zero. This will confirm both major and current downtrend. We will be looking for a short entry only.

Primary signal: CCI rising above 100 line.

Signal confirmation: CCI falling back below 100 line. Candle close. Both MACD still below zero line.

 

Stop loss: 60 pips

Take profit: 70 pips

Break even: 50 pips

 

BUY

 Both MACD histograms trending above zero. This will confirm both major and current uptrend. We will be looking for a long entry only.

Primary signal: CCI falling below - 100 line.

Signal confirmation: CCI rising back above -100 line. Candle close. Both MACD still above zero line.

 

Stop loss: 60 pips

 Take profit: 70 pips

Break even: 50 pips

Get MT4 expert advisor trading this forex strategy

For the best results, 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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