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Saturday, July 24, 2021

Forex Trading Guide 2021: Trading by MACD patterns

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:

Forex Trading Guide 2021 Trading by MACD patterns 1

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.

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