MACD Scalping 1 Minute Forex Scalping Strategy For MT4

 

Table Of Contents:

  1. MACD Scalping 1 Minute Forex Scalping Strategy For MT4
  2. Critical elements used in this system
  3. Functions of the critical elements
    1. EMA with 3 different periods
    2. MACD indicator
    3. MACD Flat Trend
    4. Selection of the trading hours
  4. The long trade setup sequence
    1. Stop loss
    2. Take profit
  5. The short trade setup sequence
    1. Stop loss
    2. Take profit
  6. MACD Scalping 1 Minute Forex Scalping Strategy For MT4 – Useful advice
  7. MACD Scalping 1 Minute Forex Scalping Strategy For MT4 – Conclusion

 

Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.

 

The MACD Scalping 1 Minute Forex Scalping Strategy For MT4 is a scalping trading strategy that is based on three different periods EMAs, MACD, and Flat Trend MACD indicator. The purpose of this strategy is to scalp a few pips out of high probability price moves on the time frame M1. Since the preferred time frame is 1M, we should look for the trade signals only in the major currency pairs.

The indicators in the system will be acting as the filter system allowing entries during the strong trends and in major harmonic swings. But to find the actual trade signal, our actions should not be limited to the use of these indicators. Other essential variables will be integrated with the MACD Scalping 1 Minute Forex Scalping Strategy For MT4 to find the quality trade signals. Now let’s see the essential elements used in this system.

 

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Critical elements used in this system

 

  1. EMA with 3 different periods
  2. MACD
  3. MACD Flat Trend
  4. Selection of the trading hours

 

Chart setup with the MACD Scalping 1 Minute Forex Scalping Strategy For MT4

 

Functions of the critical elements

To use the MACD Scalping 1 Minute Forex Scalping Strategy For MT4 in a professional manner, we have to learn about the important market details in a very strategic way. Usually, the investors get confused while doing the data analysis as they don’t have any strong idea about the core elements of the system. So, let’s have a clear idea about the basic elements used to develop this system.

 

EMA with 3 different periods

The EMA or the exponential moving average acts like the dynamic support and resistance.  The fast EMA has a period of 21 and the slowest EMA has a period of 144. On the contrary, the 34 EMA is used the reference EMA line to determine the change in the trend. You may also relate the price position with the 144 periods EMA. If the price is trading above it, the trend should be considered bullish. On the contrary, if the price trades below it, we should be expecting a bearish trend.

Identifying the change in the trend

If the 21 EMA pushes above the 34 EMA, you should be expecting a bullish rally. On the contrary, if the 21 EMA falls below the 34 EMA, you should expect the market is in the bearish momentum. Note that, the price should respect these 3 EMA just like the support and resistance levels.

 

MACD indicator

The MACD indicator is a simple tool that helps us to define the shift in the market momentum. The readings in the MACD indicator have been represented in the form of simple histogram bars. If you spot grey bars above the reference line, you should be expecting a bullish rally on the market. The length of the grey bars also indicates the strength of the momentum.

On the contrary, if you spot grey bars below the reference line, the trend is said to bearish. The slope of the single line also plays important role in the trade selection process. While taking the long trade, the slope of the red signal line should be positive. During the short trade execution, look for the bearish slope in the signal line.

 

MACD Flat Trend

The functions of the MACD Flat trend indicator are related to the trend filtering process. We all know, to make a decent profit from a certain trade, we have to execute the trade in favor of the existing trend. And the volatility of the asset must be decent or else it will be tough to make a consistent profit.

Identifying the different phase of the trend

If the market is in a strong uptrend, the MACD flat trend indicator will print green bars. On the contrary, during a strong downtrend, the MACD flat trend indicator should print red bars. If the bar is blue, you should not look for any trade signals since it indicates a consolidation period.

 

Selection of the trading hours

Generally speaking, scalping is more about trade timing. While using the MACD Scalping 1 Minute Forex Scalping Strategy For MT4, you should be extremely cautious about the trading hours. If the trades are taking during the inactive trading session, you are not going to make any profit.

Since the data analysis will be done in the 1-minute time frame, you should be very careful about the spread. Avoid trading the inactive session and news hours as the spreads are very high. It is better to look for the trading instrument in which the spread is less than 2 pips.

 

The long trade setup sequence

Scalping should be done in a very systematic way. You might be thinking that you know everything about the MACD Scalping 1 Minute Forex Scalping Strategy For MT4, still, it is not good enough to survive in the scalping industry. You have to find the trade signals with the help of sequential logic. Let see how we can open the long order in the market.

 

Conditions to execute the long trade

 

  1. Select major currency pairs which have a spread of fewer than 2 pips. Usually, you should be able to find such assets during active trading sessions.
  2. If the price is trading above the red 144 EMA, wait for the price to test that dynamic support level. If not, you should be looking for the bullish cross in the 21 and 34 EMA.
  3. A bullish cross is identified when the 21 EMA cross above the 34 EMA. And the position of these two EMA should be above the 144 EMA.
  4. Wait for the price to test the dynamic support level of 144 EMA. As the price touches the 144 EMA, you should look for the bullish price action signals like the bullish pin or the engulfing pattern.
  5. After checking all these essential factors, you should be able to open the long trade with very low-risk exposure.2

 

Execution of long trade

 

Stop loss

The retail traders usually set their SL below the 144 EMA while using the MACD Scalping 1 Minute Forex Scalping Strategy For MT4. But if you want to use tighter SL, you may use the price action confirmation signal as a reference point to set the SL.

 

Take profit

Since the system is based on the 1-minute time frame, we should not aim for an insane risk to reward ratio. Based on the SL point, you should calculate the take profit so that the minimum risk to reward ratio is 1:2.

 

The short trade setup sequence

Some of you might be thinking that the MACD Scalping 1 Minute Forex Scalping Strategy For MT4 needs to be used just like a trend trading strategy. But once you read the process of short trade execution, you will notice, the existing trend is not that vital in this system. Let’s learn the key sequence to take the short trade.

 

Conditions to execute the short trade

 

  1. Pick an asset that is trading closing to the EMA levels. The spread of the asset should be less than 2 pips.
  2. As the price test the dynamic EMA, you should be able to spot a bearish price action signal. Note that the EMA will act as strong resistance while the price is trading below it.
  3. If you trying to trade in a new bearish trend, you should spot the bearish cross-over in the 21 and 34 EMA. And the slope of the 144 EMA should be negative.
  4. Check the economic news so that you don’t end up taking the trades right before the news. The volatility of the market should not extremely high as it may hunt the SL price.
  5. Finally, look at the slope in the 3 EMAs. Just before you take the short trade. 21, 34, and 144 EMA should have a negative slope.
  6. After checking these essential factors, you should be able to open the short trade at the dynamic resistance level.

 

Execution of the short trade

 

Stop loss

The general rule to place the stop loss is to use the dynamic EMA levels. The SL price can also be determined by analyzing the formation of the price action signals.

 

Take profit

The take profit is determined with the help of the support level. But the minimum risk to rearward ratio should be 1:2 while using the MACD Scalping 1 Minute Forex Scalping Strategy For MT4.

 

MACD Scalping 1 Minute Forex Scalping Strategy For MT4 – Useful advice

Scalping is not suited for everyone. Before you start using the MACD Scalping 1 Minute Forex Scalping Strategy For MT4, you should test the key steps of the system in the demo account. Be honest and ask yourself whether you can deal with such a fast-paced trading strategy. If you fail to connect with this system or consider it complex, it is better not to use this strategy till become confident.

 

MACD Scalping 1 Minute Forex Scalping Strategy For MT4 – Conclusion

Securing steady cash flow with the help of the MACD Scalping 1 Minute Forex Scalping Strategy For MT4 is a very challenging task. Due to the unpredictable nature of the market, you will often have to lose trades. So, always trade with proper money management rules and never lose hope even if you have to deal with few consecutive losses.

Download the complete system description and the files here:

FREE MACD Scalping 1 Minute Forex Scalping Strategy

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