MACD Reversal Scalping System For MT4
Table Of Contents:
- MACD Reversal Scalping System For MT4
- The MACD reversal scalping forex trading system – Long positions
- The MACD reversal scalping forex trading system – Short positions
- Is the MACD reversal scalping forex trading system good for you?
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 Reversal Scalping System For MT4, as the name suggests is a scalping system for trading the price reversals. This is a mix of both a trend following and counter trend trading methods that are involved. Therefore, it is up to the trader to decide which trading approach they want to use in this trading system.
There are quite a few indicators that make up into the MACD reversal scalping forex trading strategy. On the price chart, the first indicator that you see is the Bollinger band indicator. This purple color indicator comes with the setting of 22 periods and two standard deviations.
Following this, we also have the Sig CCI indicator. This indicator basically colors your candlestick charts based on the trend. However, we did not see any major difference. In fact, using a Heiken Ashi candlestick might better help to ascertain the trends using the candlesticks.
In the sub window of the MACD reversal scalping forex trading strategy, we have a custom indicator called the MACD. Here, we use multiple instances of this custom MACD indicator. The settings are 17, 7, 13, 5, 17 14 and 12, 18. All of these indicators are overlaid on each other. As a result, what you get is a rather unique looking indicator in the sub window of the MACD reversal scalping forex trading strategy template.
There are two lines on the indicator, marked in red and green. When the MACD indicator moves above the red line, it signals a strong downtrend is in place. Similarly, when the MACD indicator is below the green line, it signals that the uptrend is strong.
This is somewhat reverse comparing to the buy and sell signals that one gets to see, where the bullish signals are often to the upper end while the bearish signals are to the lower end. So, it takes a bit of getting used to.
We should mention that the MACD reversal scalping forex trading strategy comes with alerts from the CCI sig indicator. Therefore, when you use the MACD reversal scalping forex trading strategy template on multiple charts, you will start to see a lot of alerts popping up which can be a huge distraction. Therefore, we recommend that you turn off the alerts and save the template once again, so that you can focus on the trading system rather than have the alert window continuously distract you.
For some traders who are interested, there is also a custom GBPUSD indicator that comes with the MACD reversal scalping forex trading strategy. You can apply this template, but only on the GBPUSD chart. Let's now take a look at how you can trade using the MACD reversal scalping forex trading strategy.
The MACD reversal scalping forex trading system – Long positions
For long positions using the MACD reversal scalping forex trading strategy, we start by looking at the price chart itself and the slope of the Bollinger band. We need to the Bollinger band sloping upward from the bottom end of the chart. After this, wait for the up arrow to show up on the price chart.
We need to see price action trading near the lower end of the Bollinger band. Following this, look to the MACD indicator. Ideally, we want the trend to be stable at this point. Therefore, the MACD indicator should be completely within the red and green lines.
When the conditions are right, you can now take a long position in the market. Open a long position at the start of the next candlestick. Set your stop loss to a few pips below the low of the signal candlestick. For take profit, you can use the mid Bollinger band and the upper Bollinger band as the take profit levels.
The MACD reversal scalping forex trading system – Short positions
For short positions using the MACD reversal scalping forex trading strategy, we start by looking at the price chart itself and the slope of the Bollinger band. We need to the Bollinger band sloping downward from the top end of the chart. After this, wait for the down arrow to show up on the price chart.
We need to see price action trading near the upper end of the Bollinger band. Following this, look to the MACD indicator. Ideally, we want the trend to be stable at this point. Therefore, the MACD indicator should be completely within the red and green lines.
When the conditions are right, you can now take a short position in the market. Open a short position at the start of the next candlestick. Set your stop loss to a few pips above the high of the signal candlestick. For take profit, you can use the mid Bollinger band and the upper Bollinger band as the take profit levels.
Is the MACD reversal scalping forex trading system good for you?
In conclusion, the MACD reversal scalping forex trading strategy is a simple to use trading system. The buy and sell signals are generated by the arrows on the price chart. Traders then have to look to the confirmation from the MACD indicators and then trade accordingly.
The MACD reversal scalping forex trading strategy is a short term trading system. So this trading strategy is best suited for trading on the 15 minute chart time frame only. It requires that you constantly keep a watch on your positions. You could of course make use of a fixed risk to reward set up to keep this trading strategy simple or if you do not have time to constantly watch the charts.
The custom GBPUSD and USDCHF trading templates are also available. You can use these templates to trade those custom currency pairs. However, we did not see any big advantage because of this. You can of course experiment to find a setting that works best for you.
The MACD reversal scalping forex trading strategy is ideally suited for traders at all levels. Beginners might find it somewhat challenging to learn the trading signals, but following this, it should be easy to trade the forex markets using the MACD reversal scalping forex trading strategy.
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Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
