Trading on a 4-hour chart using MACD patterns is a simple and quite profitable strategy.
This 4-hour MACD strategy uses the following forex indicators:
Moving Averages – Moving Averages:
1) exponential moving average (period 365) – 365 EMA
2) simple moving average (period 200) – 200 SMA
3) simple moving average (period 89) -89SMA
4) exponential moving average (period 21) – 21EMA
5) exponential moving average (period 8) – 8EMA
Settings for MACD:
Slow EMA with a period of 13
Fast EMA with a period of 5
MACD EMA with a period of 1
Horizontal Lines:
A set of three horizontal lines must be set above and below the zero mark in the MACD indicator window with a step of 0.0015
The patterns created by the MACD indicator are profitable patterns. You should use only trading signals that have the highest probability of making a profit.
The working patterns are presented below:
The MACD indicator on the patterns shown in Figure A and D moved from the level of 0.0045, which indicates that a corrective movement or a trend change may have occurred. These patterns are called counter-trend patterns.
Trending patterns are B and C, allowing traders to enter in the direction of the trend. The signal to conclude a deal is red circles, it is recommended to enter the market with the opening of a new candle or bar.
