Adding to the winner with MACD and EMA (FOREX strategy)

To risk 10 pips to get + 100 sounds like a good risk reward ratio. This is classical / conservative forex strategy, that can be applied on any market. It is using two of the most well know tools of forex analysis. Technical indicators MACD and MA (moving average).  Strategy doesn't produce exponential gains as some of the extremely aggressive strategies do. This strategy allows  to open multiple trend following positions allowing us to improve our leverage while in trend. It provides stable and relatively secure gains, when done correctly.

 

Forex indicators used in trading system

MACD (Moving average convergence divergence) 24,52,9

EMA (exponential moving average) with period 5 (green) and 14 (red)

SMA (smoothed moving average) 200 red

 

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.

 

SELL

 

Price together with both EMAs trending below SMA 200.

MACD histogram above zero line.

EMA 5 crosses EMA 14 downwards. We enter the trade short on first candle closing after the EMA cross.

Another trade can only be opened if previous one is in profit. At point of entering another trade to the same direction we move stop loss of previous trade to break even.

Stop loss is placed above the signal formation.

Take profit: We exit all short positions once MACD histogram closes below zero.

 

BUY

 

Price together with both EMAs trending above SMA 200.

MACD histogram below zero line.

EMA 5 crosses EMA 14 upwards. We enter the trade short on first candle closing after the EMA cross.

Another trade can only be opened if previous one is in profit. At point of entering another trade to the same direction we move stop loss of previous trade to break even.

Stop loss is placed below the signal formation.

Take profit: We exit all short positions once MACD histogram closes above zero.

Please reload

ABOUT US

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