MACD MA 4 Hour Forex Trading Strategy


You can now download the MACD MA 4 Hour Forex Trading Strategy for free on AtoZ Markets indicators gallery.

Moving averages are typically used to determine a trend direction. This is done in different ways. It could be determined by identifying the location of price in relation to a moving average. A trader could also make use of the slope of a moving average to identify the direction of the trend. Or a trader could also make use of two or more moving averages and identifying the location of the faster MA in relation to a slower moving average, or simply looking at how the moving averages are stacked.

Logically, if a trader is identifying trend direction using the last method mentioned, identifying the location of a faster MA in relation to a slower moving average, it could be argued that the crossover of the two MAs is the start of a new trend.

Indicators:

  • MA-4H
  • MACD

Timeframe: 4-hour chart only

Currency Pair: any

Trading Session: any

How to Trade with MACD MA 4 Hour Forex Trading Strategy?

MACD MA 4 Hour Forex Trading Strategy aims to make use of the Moving Average at 4H custom indicator, which is an indicator based on a moving average crossover. However, this indicator is specifically preset to be used for swing trading strategies.

The same standard crossover will be used. The green line represents the slower moving average while the red line represents the faster MA. If the red line crosses above the green line, then the market is said to be bullish. If it crosses below the green line, then the market is said to be bearish.

This method will be used in tandem with the standard MACD indicator with default parameters. However, we will be focusing on the histogram bars as our main signal. We will be looking at when the histogram bars would be crossing the zero line. If the histogram bar crosses above zero, then the market is said to be bullish, while if it crosses below zero, then the market is said to be bearish.

Buy (Long) Trade Setup

Entry

  • MA-4H: the red line should cross above the green line indicating the start of a probable bullish trend
  • MACD: The MACD histogram should cross above zero confirming the start of a probable bullish trend
  • Open a buy trade order on the confluence of the above conditions

Stop Loss

  • Set the stop loss below the moving averages

Exit

  • Close the trade as soon as the MA-4H’s red line crosses below the green line

Sell (Short) Trade Setup

Entry

  • MA-4H: the red line should cross below the green line indicating the start of a probable bearish trend
  • MACD: The MACD histogram should cross below zero confirming the start of a probable bearish trend
  • Open a sell trade order on the confluence of the above conditions

Stop Loss

  • Set the stop loss above the moving averages

Exit

  • Close the trade as soon as the MA-4H’s red line crosses above the green line

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 bottom of the post.
  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 the “MACD MA 4 Hour Forex Trading Strategy” template to apply it on the chart.

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

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