MACD, horizontal tunnel breakout FOREX strategy

Horizontal tunnels are one of the best signals you can find in forex (or any other markets). They simply signalize that market has paused, gaining strength for new, substantial move. In trend it is more likely that price will continue in its previous direction. This slight statistical edge equals money in the pocket, if we use equal stop and take profit targets.

 

Used forex indicators

MACD (moving average convergence divergence) 48,102,9

Skills

Trendline drawing, horizontal tunnel identification (support and resistance zones) Timeframe

Recommended 15 min and EURUSD, however this strategy works in any timeframe above 5 min and any currency pair.

 

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.

 

BUY:

MACD histogram closing above zero – uptrend

We can draw a horizontal tunnel connecting at least two tops (creating resistance) and two bottoms (creating support). Supports and resistances are zones, not lines, draw them as such. Find price zone that influenced the price the most in previous peaks and valleys.

We switch to lower timeframe (from 15 min to 5 min).

We wait for first bullish candle to clearly close above resistance. We enter long on candle close.

Take profit:  Total width of the range. (from entry to support)

Stop loss: Total width of the range.

 

SELL:

MACD histogram closing below zero – downtrend

We can draw a horizontal tunnel connecting at least two tops (creating resistance) and two bottoms (creating support).

We switch to lower timeframe (from 15 min to 5 min).

We wait for first bearish candle to clearly close below support. We enter long on candle close.

Take profit:  Total width of the range. (from entry to resistance)

Stop loss: Total width of the range.

Notes: Width of the range is applied starting from entry.

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