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4 Hour MACD Forex Strategy

This is a solid method that is very profitable that focuses on the 4hr and 1hr timeframe using MACD histogram patterns and basic moving averages. The method has almost 8000 posts on the thread. All the information can be found at the link included here. I'll stop back by a little later to answer any questions. The website requires no email or registration whatsoever, it's all free.

Thanks much for all the time and work that went in to this site, and the generosity it reflects in sharing it.

Thanks for the comment. It really is about giving something back.

"I finally found it."

Here was a typical entry today on the EURUSD.

Last week I made 95 on the $Yen. 25, then 50, then 25. The risk is generally around 30 pips, or where the previous low was. I never risk much more than that. If I'm 'curious' about something, I'll trade a 0.1 lot as a just to see what might happen thing. It's easier to gauge per month because I only follow the $Yen and the EUR$ so if the market is ranging for a few days a there may be only one signal that week. If I'm in 'good' like up 30 or 40 pips on a trade I usually exit one or two with that and let the other one ride a very minimal trailing stop like a 30 or 40 pip one. Sooooo, the per month range has been between 100 to 600 pips. August made my year so far, that was the 'fat' month, downtrend the first few weeks then up for the next two. I would say that the per month average is around 250 or so. I'm heavily involved with the thread over at the Forex Factory. I'd like to say again that it is not my intention to divert traffic away from this site. I'm just spreading the news about the method. Everything on the site is free. It's really worth taking a look at. I put the site together and I'm in touch with Phillip a few times a week about suggestions or improvements to the site, not the method. He introduced the method back in January and nothing has been changed with it at all. If you look under the Tools link on the website there are two .pdf files with charts from the beginning of the year through the first week of October for the EUR$. Download those and print them out after you have read the .pdf for the method. It's really good stuff.

thanks for starting the discussion on this thread for the benefit of this forumers.

By the way i am also following this method but i tend to take too many false signals or i get knocked out of the trade because iam not too clear on the TP and SL . Can you please help me out as iam trying this on the live account.

Thank you for your help

After a round top (Rt) or round bottom occurs (Rb) your first profit target should be the 21 EMA area. The second profit target is the 89 SMA area. The third target is the 200 SMA. But, the 200 SMA is usually a pretty good distance away if the market has been trending for a while. This is why it is a good idea to have your trendlines drawn and support/resistance areas. Also, if a previous s/r area was a 'tough' barrier, even if it's an 'old s/r' area, that should be considered a target as well. Once my 21 area is hit, I'll either move my stops up on my remaining lots or move them to break even. If it was a good move to the 21 I'll more than likely move things to b/e. As far as your stop loss, it should be the low of the previous candle before the signal occurred or in that area. The risk:reward should be at least 1:1. So, if the 21 ema is 30 pips away your stop should be no more than 30 pips. But, markets do need room to breathe and nothing is perfect. If the 21 is say 20 pips away I'll give my stop a little more room than 20 pips. just because. If my 21 EMA is say 35 pips away, I'll take profit when price is in that area. 25 30 pips or so. I hate giving anything back. Pips in the bank are pips in the bank. When the market starts trending well and the rhythm strength is strong and your still in, place your stops just under (if long) the 21 EMA. If you get stopped out, then look at the 1hr charts for a trend continuation signal to re-enter the trend.

4 hour macd forex strategy

i think its depends on the most right signal and the most profitable positions

not many positions
[Reply]

this is nice strategy to know the direction of the price

and its soo useful on swingers positions

thanks man to share it
[Reply]

i think you can work on short time frame but based on the long time trend direction
[Reply]

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Free 4-Hour MACD Trading Strategy Ebook

Quite some time has passed since I last added something new to the free ebooks section on EarnForex.com. Today, it is a trading strategy manual written by an unknown but highly experienced and detail-attentive author.

This MACD trading strategy is rather simple, yet it encompasses several aspects of the currency market and the actual trading process. Although it is based on very popular and widely used Moving Average Convergence/Divergence signals, it is also imbued with moving averages and horizontal price levels. Additionally a lot of actual trade examples, recommendations and exercises are included into this ebook. It is composed of the following document files:

  • 4+Hour+MACD+Forex+Strategy.pdf — the actual strategy description document. Read it first.
  • Consolidation+Management.pdf — some notes on money management connected with the possible periods of market consolidation.
  • Excercise+MACD.pdf — a series of chart slides with a new bar added in each, allowing you to forecast the move with the strategy and check your forecast by looking at the following slides.
  • GbpUsd.pdf — an example GBP/USD chart with strategy’s complete markup.
  • No+Filter+Trade+as+you+see+it.pdf — many examples of unfiltered trading signals generated by the strategy.
  • Planning+your+Trade.pdf — some additional recommendations regarding position exits.
  • Presentation1.pdf — a EUR/USD @ H4 chart with all the strategy’s indicators attached but no additional markup or text.
  • Tsunami.pdf — what is the nature of success in FX trading and how the 4-hour MACD strategy should be employed.

While the proposed trading system looks thought out and generated profits during the observed test periods, there is one consideration against its profit-taking method that I would like to express. The strategy promotes taking partial profits at different levels, basically, scaling out of the positions. Even though the method bases the exit levels on indicator values, it is still a potentially weak point of the position management system utilized here. So I would recommend altering this aspect of the exit rules’ implementation. Nevertheless, use the strategy on your own risk and trade responsibly. You can download the full set of files for free:


If you have any questions, comments or suggestions regarding this e-book or about adding more free books to EarnForex.com, please feel free to post them in the comments below.

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7 Responses to “Free 4-Hour MACD Trading Strategy Ebook”

Took a quick glance of the e-book and I have to say it is pretty well and thoroughly written, you are right about the non-filtered examples, I am always pretty reluctant to read someone’s else strategy but this one is pretty some like mine, something there resonates so I might read it more carefully, I feel it has the good elements needed in a strategy like the understanding of positive and negative divergence with cycle indicators that revolve around the trending ones, what I did not see is the price action accommodation in all of it that I feel would be certainly a plus, thank you for sharing.

admin Reply:
November 7th, 2012 at 9:45 am

Adding some price action analysis would make the system a lot more complex, don’t you think so?

Eric D Reply:
November 8th, 2012 at 2:20 am

Yes that’s true,it might be just my way of doing trading analysis getting in the way of it all, I have read more carefully the e-book and found some good advice there, specially the MACD patterns recognition, it kinds of bothers me though, that the results seem a little bit biased over the positive returns, and several negative setups were kind of ignored, but it is really good material above all and got something useful of it of course, I appreciate your efforts.

please send ebook.

admin Reply:
September 20th, 2013 at 2:52 pm

You can download it using the link in this post.

Hi everyone, This strategy was written by my father, Phillip Nel

This Strategy owns to Phillip Nel from South Africa

Simple MACD Forex Strategy

MACD is one of the most commonly used trading indicators in forex. This utterly simple strategy will help you to trade with the short-term trend.

Trading Tools/Settings

Indicators: MACD (moving average convergence/divergence) with default settings(12,26,9).
Time frame(s): 15 Min and above
Trading sessions: All
Currency pairs: All

Download

GBP/USD 4 Hour Chart Example

Trading Rules

Long Entries:

  • MACD histogram closes above it’s zero line from below.

Place protective stop-loss below the most recent support area. Take profit when the MACD crosses below the zero line from above(basic MACD exit strategy).

Other buy exit strategies: Exit long trade at 1:2 risk-to-reward. Exit at key resistance levels. Exit long trade at trend line violation.

Trend Line Violation (GBP/USD Long trade closed for 464 pips)

Short Entries:

  • MACD histogram closes below it’s zero line from above.

Place protective stop-loss above the most recent resistance area. Take profit when the MACD crosses above the zero line from above(basic MACD exit strategy).

Other sell exit strategies: Exit short trade at 1:2 risk-to-reward. Exit at key support levels.

Advantages of basic strategies with MACD

Very easy to apply. Works well in trending markets.

Disadvantages

It doesn’t perform well in range-bound “flat” markets. Use in conjunction with other indicators or techincal analysis tools.

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