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Dual MACD Forex Trading Strategy

Amandeep Sonewane | May. 14, 2019
Dual MACD Forex Trading Strategy

You can now download the Dual MACD Forex Trading Strategy for free on AtoZ Markets indicators gallery.

Oscillating indicators are often used as entry signals for mean reversion strategies. This is very logical because oscillating indicators are good at identifying oversold and overbought market conditions, or at least eyeballing an overextended trending market. However, adjusting an indicator’s parameters could make a huge difference on whether an indicator could be made responsive enough to use for short-term trades.

The idea behind Dual MACD Forex Trading Strategy is to use the faster MACD as an entry signal while using the slower MACD as a confirmation that the main trend still hasn’t shifted directions. Using this strategy trader can able to enter on the retracements because the faster MACD is sensitive enough to provide signals during retracements.

Timeframe: 1H chart and above

Currency Pair: any pair except large spread

Trading Session: on the 1H chart preferably when one of the currencies’ market is open (Ex: GBPUSD – London or New York session); 4H charts and above could be any trading session.

How to trade with Dual MACD Forex Trading Strategy?

Buy Setup

Entry

  • Price should be above the 50 EMA
  • Both MACDs should be above zero
  • Price should retrace, touch and bounce off the 50 EMA
  • Fast MACD should retrace, go below the zero and bounce above it in three candles or less
  • Enter a buy market order on the candle close corresponding to the fast MACD’s cross above the zero line

Stop Loss

  • Set the stop loss at the swing low below the entry candle

Take Profit

  • Set the take profit at 1x the risk on the stop loss

Sell Setup

Entry

  • Price should be below the 50 EMA
  • Both MACDs should be below zero
  • Price should retrace, touch and bounce off the 50 EMA
  • Fast MACD should retrace, go above the zero and bounce below it in three candles or less
  • Enter a sell market order on the candle close corresponding to the fast MACD’s cross below the zero line

Stop Loss

  • Set the stop loss at the swing high above the entry candle

Take Profit

  • Set the take profit at 1x the risk on the stop loss

How to download and install an indicator?

In order to install the indicator on your MT4 platform, you need to follow these steps:

  1. Click on “Download Indicator” button located at the top right corner of the screen.
  2. Save the file to your computer.
  3. Extract and move the files into MT4>Indicator folder of the MetaTrader4 software file directory.
  4. Restart your Metatrader platform.
  5. Navigate to “Indicators.”
  6. And select “Dual MACD Forex Trading Strategy” template to apply it on the chart.

Note: This indicator was developed by FxKings. AtoZ Markets does not carry any copyrights over this trading tool.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.