1 Hour Forex Trading Strategy With MACD

This 1-hour currency trading strategy with MACD is a trend trading system and, as the name implies, the term you can use to trade this system in 1 hour.

This forex strategy may take a while to understand, but look closely at the charts below and you will understand that it is simple.

What currency pairs are suitable for the 1-hour currency trading strategy with Macd?

Preferably older ones, but you can also use this in others.

Forex Indicators you need for the 1-hour Forex strategy with MACD

You need the following indicators for this forex strategy:

  • 50 exponential moving average that should apply to HIGH
  • 50 exponential moving average applied to BAJA
  • 15 exponential moving average applied to CLOSE
  • Custom Macd-with-EMA indicator, click to download (configuration 35, 70, 1, 12), see below:

Selling Rules

  • The MACD histogram must be in the correct color, red for the downtrend (or any color you choose in the custom MACD indicator)
  • The MACD moving average must be “within” the colored area of ​​the MACD histogram
  • When the price rises and reaches 15ema and bounces down or rises through 15ema and goes back, it is a trade sale signal provided that the following conditions are met: the minimum of the candle is not more than 50 pips of 15 EMA and 15 EMA should not be “within” the 50 EMA channels.
  • The trade configuration candle is the candle that touches the 15 ema Or crosses it but makes a lower minimum, which means that it breaks the minimum of the previous candle. In this candlestick, it establishes a sales stop order of 2-5 pips (allow the spread) below its minimum to catch the breakdown of the price movement.
  • Place stop loss at 100 pips.
  • Take the profit target at 100 pips.
  • Move the trailing stop to reach the breakeven point at 50 pips.

This chart explains what it means to have the MACD MA “inside” the histogram (red lines, etc.), this is for a sales configuration:

Here’s an example of a sell trading setup:

Buying Rules

To buy, it does the exact opposite of what it does in the sales configuration, but here are the trading rules:

  • The MACD histogram must be in the correct color, green for the uptrend
  • The MACD moving average must be “within” the colored green area of ​​the MACD histogram
  • When the price falls and reaches 15ema and bounces up or down through 15ema and goes back, it is a buy and exchange signal provided that the following conditions are met: the maximum of the candle is not more than 50 pips of the 15 EMA and 15 EMA should not be “within” the 50 EMA channels.
  • The candle of commercial configuration is the candle that touches the 15 ema Or crosses it but reaches a higher maximum, which means that it breaks the maximum of the previous candle. In this candlestick, set a purchase stop order of 2 to 5 pips (allow propagation) above its maximum to catch the upward break if it happens.
  • Place stop loss at 100 pips.
  • Take the profit target at 100 pips.
  • Move the trailing stop to reach the breakeven point at 50 pips.

Disadvantages of the 1-hour Forex Trading Strategy with MACD

  • MACD and Moving Average are lagging indicators, so there is always the late entry factor.
  • the system will not work well in a varied market

Advantages of the 1-hour Forex Trading Strategy with MACD

  • In a strong trend market, expect to get good profitable pips with this trading system.
  • The use of the price action to perform purchase or sale operations improves your input. For example, look for bullish investment candles when the price begins to reach the line of 15 ema in an uptrend and look for bearish investment candles when the price begins to reach the line of 15 ema in a downtrend.