You can now download the MACD Bars Forex Trading Strategy for free on AtoZ Markets indicators gallery.
This trading strategy is based on Rads MACD and AMA_optimized indicators. The Rads MACD on its own has the potential to be a good indicator to base a profitable trading strategy on. However, for this strategy, we will be pairing it with AMA_optimized custom indicator.
The AMA_optimized indicator will serve as a filter and an early indication of a possible reversal and potential start of a trend. The AMA_optimized indicator is basically a moving average based indicator that plots blue dots whenever it detects a bullish trend and red dots if it detects a bearish trend. As such, we will be looking for possible buy setups if the AMA_optimized indicator starts printing blue dots, and sell setups if it starts printing red dots.
- AMA_optimized: 14-period
Currency Pair: any
Timeframe: 5-minute, 15-minute, 30-minute, 1-hour, 4-hour and daily charts
Trading Session: any
How to Trade with MACD Bars Forex Trading Strategy
Buy (Long) Trade Setup
- Price must be above the AMA_optimized line
- The AMA_optimized indicator should print a blue dot
- The Rads_MACD indicator should print a lime bar above the zero line
- Place a buy order on the confluence of the above rules
- Place the stop loss at the support below the entry
- Close the trade as soon as three consecutive red histogram bars are printed by the Rads_MACD
Sell (Short) Trade Setup
- Price must be below the AMA_optimized line
- The AMA_optimized indicator should print a red dot
- The Rads_MACD indicator should print a red bar below the zero line
- Place a sell order on the confluence of the above rules
- Place the stop loss at the resistance above the entry
- Close the trade as soon as three consecutive lime histogram bars are printed by the Rads_MACD
How to download and install an indicator
In order to install the indicator on your MT4 platform, you need to follow these steps:
- Click on the “Download Indicator” button located at the bottom of the screen.
- Save the file to your computer.
- Extract and move the files into the MT4>Indicator folder of the MetaTrader5 software file directory.
- Restart your Metatrader platform.
- Navigate to “Indicators.”
- And select the “MACD Bars Forex Trading Strategy” template to apply it on the chart.
Note: This indicator was developed by Jack. AtoZ Markets does not carry any copyrights over this trading tool.