FREE FOREX STRATEGIES

Forex trading strategy #7 (Simple MACD crossover)


Trading with MACD indicator is widely used by Forex traders.
Let's take a glance at the very basis of currencies trading with MACD indicator.

We will need only MACD indicator with standard settings: 12, 26, 9.
Any time frame as well as any currency pair can be used.


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Also, can you suggest MACD values for the AUDJPY 15m and 1H charts?

Edward, Edward,
You're the man! You're the bomb! This is absolutely the most mind-blowing website for solid training in fx trading I've ever been to! On behalf of all of us who've been frustrated by the assorted sharks and grifters selling us crap for big bucks - Thank You! Thank You! Thank You! (Sigh.)

Seriously though, I've had little success finding good MACD values for the USDJPY 15m chart. Any suggestions?

I've found (01, 03, 16) on the 15m GBPJPY gives some good signals...so far.

Don't stop the good stuff!

A signal line just have to produce a cross of any type - when it crosses from above and goes downwards - we sell; when it crosses from below and heads upwards - we buy.

If you still have doubts about MACD cross signals, you can upload your screenshot and we will look at it together.

Regards,
Edward

Hi ,

Edward : i would like to know is it when signal line crosses over then go downward or is it signal line crosses over from downwards ?

thanks

Besides parameter 24,72,8 i introduce before, in EUR/USD i have tried for EUR/USD in 60 Minutes Charts with Parameter 6,12,6 is fast enough to.

All The Best;

Manus168

Just want to share idea about MACD Crosses signal Trading System; for EUR/USD(Only) m5 Charts or H1(60 Minutes) w/ Oanda Brokers MACD:

24,72,8

SL: 35 pips.
TP: 75 Pips.

Regards;

Hi Ed -

The best Macd signals occur with the convergence or divergence of the macd graph. Ie: when the macd graph shows a low then a higher low while the price is moving the opposite dir. Conversely - when the macd graph shows a high, then a lower high while the price is rising, you can expect a sharp drop in the price.

Entry with MACD divergence


Entry with MACD divergence

Hello Wes,

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.

Regards,
Edward

HELLO, when MACD appears above and below zero line , how does one decide which point (above or below )should be used to place an order
Wes

Remcurrence,

pip levels on MACD histogram? Did you mean how to change settings for MACD?
If so, you'd need to RightClick on indicator and form the menu choose "Edit settings" and type in your own numbers.

If you want to draw somethig on MACD, for example a trend line or highlight a zero level etc, you simply use drawing tools available at your trading platform; I often use simple Trend line tool.

hallo good people, I was just wondering how to set pip levels on the Macd histogram. Thanking you in advance.

Regards, Remcurrence.

Hi Jatin,

These numbers for MACD are found through testing and experimenting. The way you do it, you simply pick a currency pair and a time frame and start "playing" with MACD settings till you get the most in your opinion accurate, fast and winning signals.

While there are many different suggestions about what MACD settings are the best, there is still a general rule of thumb: using the settings suggested by the author of the indicator is the most beneficial. Firstly, because no one probably has done more research on the indicator behaviour than the author of the indicator; secondly, because majority of Forex traders prefer using standard settings suggested for indicators, which enables them to see the same picture of the market and react to market changes all at the same time.

Hope this helps in your own research.

Regards,
Edward

hi i am jatin from india. i want to know that the basics of selecting numeric sequence for the setting parametres of the incators. As u told for USD/CHF(04.07.16) and differ for EUR/USD (02.03.20). how this setting is get effected by the currencies pairs.

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.

Regards,
Edward

I use MT4 but there no cross line in MACD 12 26 9. PLZ help me in it. how can i use this


 

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