XPMA-MACD Scalping Strategy For MT4
Table Of Contents:
- XPMA-MACD Scalping Strategy For MT4
- XPMA-MACD Scalping Strategy For MT4 – Long positions
- XPMA-MACD Scalping Strategy For MT4 – Short positions
- Is the XPMA-MACD Scalping Strategy For MT4 profitable?
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 XPMA-MACD Scalping Strategy For MT4 is a trend following forex trading system. Rating system makes use of the moving average lines as the main driving force behind the trading itself. Further to this, we have the regular MACD indicator as well. Bear in mind that there are two templates that comes with this trading system.
As far as the instructions to take long and short positions go, we have used the second template which is ideal for swing trading. Trading with this template can be done on the one hour chart timeframe. However, as the name of the template suggests, this is used for swing trading and as a result you might end up holding your trade positions for few days if not more.
The XPMA – MACD scalping strategy is a Trend following system and as a result there are both advantages and disadvantages of using this trading strategy. The first is of course the fact that this trading system can work very well when the markets are in a strong trend. However, once the market shift to a sideways range, you will start to see a lot of false signals coming through.
This is even more evident when you use the second template called the swing trading template. Here, there is no MACD indicator an as a result, it can get really difficult for you to understand what the markets are doing. But traders can overcome this by applying an oscillator of their choice which will help them to understand the market context a bit more.
There are a few other additional indicators such as the intraday pivot levels which is used on the short term intraday trading template. Following this, we also have some additional information such as the market information which displays the instrument on which the template is applied and the current market price. We find that these indicators do not add any value to the trading strategy itself therefore, traders can think of removing these additional indicators to make the template a bit more easier to handle.
Let's now take a look at how you can trade long and short positions using XPMA - MACD scalping strategy for MT4.
XPMA-MACD Scalping Strategy For MT4 – Long positions
To take long positions using the XPMA - MACD scalping strategy, look for the two short term moving averages to make a bullish crossover. Around this time, you will also see that the candle sticks will change color from red to green. This will be the initial confirmation that the market is moving to the upside.
Following this, wait for price action to make a retracement and set a pending long order near the previous high that has formed. Using the retracement low, set your stop loss to this level. For your take profits, you could either make use of a fixed risk to reward ratio or make use of the pivot point levels as your target levels for your trades.
Alternately, we also recommend that you can look at the previous support and resistance levels as pointed out by the pink and blue dots on the price chart. This can be a very good way of setting up your take profit levels very objectively. Last but not the least, look to the indicator in the first sub window to show confirmation of the bullish markets.
XPMA-MACD Scalping Strategy For MT4 – Short positions
To take short positions using the XPMA - MACD scalping strategy, look for the two short term moving averages to make a bearish crossover. Around this time, you will also see that the candlesticks will change color from green to red. This will be the initial confirmation that the market is moving to the downside.
Following this, wait for price action to make a retracement and set a pending short order near the previous low that has formed. Using the retracement high, set your stop loss to this level. For your take profits, you could either make use of a fixed risk to reward ratio or make use of the pivot point levels as your target levels for your trades.
Alternately, we also recommend that you can look at the previous support and resistance levels as pointed out by the pink and blue dots on the price chart. This can be a very good way of setting up your take profit levels very objectively. Last but not the least, look to the indicator in the first sub window to show confirmation of the bearish markets.
Is the XPMA-MACD Scalping Strategy For MT4 profitable?
The XPMA – MACD scalping strategy makes for a fairly good trend following trading system. There are two templates that comes with this trading strategy. The first template is used for the intraday short term scalping while the second template can be used for long term swing trading. However, we should clarify that when we mention swing trading, most of the trading activity takes place on the one hour chart timeframe.
While the trading strategy in itself is quite simple and easy to follow, the fact that there are no complementing indicators in the sub window makes it somewhat falling short of expectations. Further to this, the fact that the moving average convergence divergence indicator is mentioned in the title of this trading strategy is also misleading. As you have seen from the charts, there is no such indicator and all you are left with is just the moving average indicator.
There are quite a few indicators which tend to clutter up the chart quite a bit. The most important of these are the forex sessions indicator which tends to change the colors of the background of your chart. If you have a bit of trading experience, then we do not see a need for having these indicators set up on the template. Therefore, experienced traders can remove these indicators and make the charts a little bit cleaner.
We would also recommend that traders look for a complementing indicator in the sub window such as the relative strength index or the MACD indicator itself or any other similar indicated that would help traders to time their trades when the markets are turning.
Despite the shortcomings of the XPMA – MACD scalping strategy, this is a trading system that can be used by traders at all levels. Beginners will find it easy to trade especially with the visual color change of the candlesticks themselves.
Download the complete system description and the files here:
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
