MACD Crossover Forex Trading Strategy-In A Trending Market, This System Can Make You hundreds of pips Easily

The MACD crossover forex trading strategy is a very simple forex trading strategy beginner forex traders can find it quite easy to use.

Here’s a brief explanation of the MACD indicator:[sociallocker]

  • The MACD is one of the most popular forex indicators used by traders to determine the trend.
  • the MACD consists of two lines, the faster moving line and the slower moving line.
  • when the faster moving line crosses the slower moving line to the upside, that means its an uptrend so you look to buy.
  • when the faster moving line crosses the slower moving line to the downside, it means its a downtrend so you look to sell.

Indicators: obviously MACD!

Currency Pairs: Any

Timeframes: Any

TRADING RULES OF THE MACD FOREX TRADING STRATEGY

  1. Wait for the MACD to cross
  2. Then Place your order-preferably a buy stop or sell stop order.
  3. You stop loss should be placed significantly away from your trade entry point to avoid getting prematurely stopped out.
  4. To exit a trade or take profit, you wait for the opposite trade signal before you exit. For example, if you were in a buy trade, then wait for a sell signal and when that happens, you exit your buy trade and enter a sell trade.

macd crossover forex trading strategy

DISADVANTAGES OF THE MACD CROSSOVER FOREX TRADING STRATEGY

  • MACD is a lagging forex indicator, by the time when you are ready to enter a trade based on the MACD signal, the market at the stage would have moved a lot.
  • This means that you may be entering a trade at a time when the market may be due for a reversal so guess what happens? ¬†You get stopped out!
  • if price consolidates or moves in a sideways trend, you will get too many false signals and may get stopped out a lot too!

 

ADVANTAGES OF THERE MACD CROSSOVER FOREX TRADING STRATEGY

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