Forex trading strategy #7 (Simple MACD crossover)

Hi Edward

You mentioned, "Here is a good customized version of MACD.
Good_Macd.zip
Unzip and add it to your trading platform.
Review How to add custom indicators to MT4 if needed."

I am using FXCM demo account. Love your site.... in short, simply the best!

After following your instruction, I still could not see the new indicators in my Trading Station. I noticed the file extension given here is .mq4 while the file extension inside my "indicators" folder are .lua and .lua.rc. Could this be the problem? If so, how can I solve this?

Thanks a million Edward!
Merz

Hi Suribaba,

The gray line is EMA 12, yellow - EMA 26.
The signal there means to Sell on M1, which is 1 minute time frame.
Later, you've highlighted the re-establishment of an uptrend according to MACD on 1 min chart.

Regards,
Edward

Thank you and welcome!
On Good_macd indicator the red dotted line corresponds to a grey line on the initial screenshot on the first page.

Regards,
Edward

Forex Guru, well i have no words to say about your service,infact tears rolled over when i found this place while losing a lot almost in verge of losing my account, i hope i can get back with all yur tips here.

one try to use your Good_Macd.mq4, found red dotted line is this suppose grey line u are taking above ?

Thank you, Claire

Happy trading!

Edward

Awesome, fantastic site - thanks Edward. I've been trying to sort out this MACD business for a while :) thanks also for posting the indicator as Alpari's MT4 doesn't allow the 9 EMA to be dropped on top of their MACD. Cheers Claire.

Yes, Mani

simply ignore.

Regards,
Edward

"When MACD signal line (gray) crosses over MACD line (blue) downwards and this cross appears above MACD zero line, it is a signal to Sell

When MACD signal line crosses MACD line upwards from below and the cross is below zero line, it is a signal to Buy"

Mr. Edward,

[1] When MACD signal line crosses over MACD line downwards and this cross
appears BELOW MACD zero line &
[2] When MACD signal line crosses MACD line upwards and the cross is ABOVE zero
line

What should we do ? Simply ignore the signal ?

Thanks in advance.

Best Regards,
Mani.

Thank you, Paul

Regarding combos, I've found an indicator that allows displaying MACD's from all time frames in one window.
Take a look:

All MACD v1[1].0.mq4

Regards,
Edward

Thanks Edward. Very nice site.

MACD taken alone, there will always be the multiple timeframe approach that adds to the probability of price mouvement. For instance, check for a MACD signal on a 30 min chart, then go to the 5 min chart and enter trades going in the same direction, MACD giving the signal there again. Other combos like 15min-1hr and 1hr-1day are often used.

Paul

Here is a full version of MACD with a histogram and both lines.
Good_Macd.mq4

Instructions on how to add MT4 indicator are here: How to add MT4 indicators

Regards,
Edward

please help to find the cross over lines beccause when i give the order to put macd indicator, it only appears without those lines. please, help
Crist

Hi Fraser,

Sure, it is compatible. 9 EMA method is compatible to virtually any trading method. Here as well.

Best regards,
Edward

Hi Edward ,

Looks like a good combination of compatible methods would be Simple # 7 and your 9 EMA method . What say you ?

Fraser

Hi Jeen,

I haven't met a trader who would use this system alone.
It is a very simple system indeed, but it requires additional touches in order to perform well over a long period of time.
For example, trading with MACD in ranging markets you'll get lots of whipsaws. Thus, you need a filter - another indicator or tool to keep you out during that time.
MACD indicator could be a base of your trading system, around which you should build few more walls to make it fail-safe.

Best regards,
Edward