2 Cross and MACD Trading System For MT4

2 Cross and MACD Trading System For MT4

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 2 Cross and MACD Trading System For MT4 is a simple strategy that focuses on Moving Average crossover. The main concept of this strategy is based on the buyers' and sellers' activity. According to the inventor of this strategy, this system can be used both in the higher and lower time frames.

As we know, price movement is relatively stable in the higher time frame, deploying the system in a higher time frame may provide a better opportunity to the retail traders.

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The 2 Cross and MACD Trading System

This trading strategy has two significant parts- the Moving Average crossover and the MACD indicator.

At first, let's have a look at the indicators used in this trading strategy:
• Exponential Moving Average (EMA) 50, 100
• EMA 5, 15
• MACD Histogram (12, 26,9).

Here the 100 and 50 EMA is used to identify investors' sentiment in the last 50 and 100 candles. If the price is trading above the 100 EMA, it will indicate the buyers are dominating the market.

At that time, if the price is trading above both 5 and 15 EMA, we can expect the sentiment of the market is bullish. Therefore, looking for the buying signals will be a wise decision.

After identifying the market sentiment, we will focus on 5 and 15 EMA’s. The position of the EMA should suggest buying signals which will reinforce the idea of long trade setups.

On the other hand, we can use the MACD reading to increase the probability for a winning the trade. But we must be careful with the risk exposure since no indicator can give us the guarantee that the setup will work.

When the MACD Histogram moves below and above a zero line, we need to look for the trade signals. When the Histogram moves above the zero lines, it provides a bullish indication of the price. Similarly, if the Histogram moves below the zero lines, it provides a bearish sentiment in the price.

In The 2 Cross and MACD Trading System For MT4, the indicators are used to determine the direction of the price. And we can get these indicators free of cost.

Before proceeding to the bullish and bearish trade setup, let's see how the chart looks like after setting the necessary indicators:

Bullish Trade Setup with the 2 Cross and MACD Trading System For MT4

The bullish trade setup's main aim using The 2 Cross and MACD Trading System For MT4 is to identify the bullish indication from all indicators. However, the timeframe and currency pairs are also important.

• Timeframe- 4 Hour or Daily
• Currency Pair- All majors but beginners should trade in the EURUSD and GBPUSD pairs as price movements are more stable.
• Trading Session- It is better to trade during the active trading session.

 

Bullish Trading Conditions

• Price should trade above the 50 and 100 EMA, which is an indication of bullish market sentiment.
• 5 EMA crosses should cross over the 15 EMA, indicating the bulls are gaining momentum.
• MACD should moves above the zero lines by imposing a bullish momentum.

 

Entry

To enter the trade, you should wait for a candle close above the crossover. In that case, the size of the candle matters. If the candle's size is too big, you should avoid taking the trades as price might retrace a bit.

 

Stop Loss

According to the inventor, the stop loss should be set by using the 50 EMA level with 10-15 pips buffer. Prices often move upside after touching dynamic levels; therefore, by using the buffer we might protect the trades from false spikes.

 

Take Profit

The inventor suggests us to set the take profit for 60 pips in the H4 timeframe and 200 pips in the daily timeframe. For GBPUSD, the take profit should be 70 pips in the H4 timeframe and 250 pips in the Daily timeframe.

However, the trader should carefully calculate the lot size so that the overall risk factor is less than 2% of the account balance.

 

Bearish Trade Setup with the 2 Cross and MACD Trading System For MT4

In the Bearish trade setup, EMA 100, 50, 15, and 5, along with MACD is used to determine the direction of the price movement. However, the timeframe and currency pairs are also important.

• Timeframe- 4 Hour or Daily
• Currency Pair- All majors but EURUSD and GBPUSD
• Trading Session- It is better to trade in the active trading sessions.

 

Bearish Trading Conditions

• When the price is below the 50 and 100 EMA, it indicates the bearish sentiment.
• When 5 EMA crosses down the 15 EMA, it indicates a downtrend.
• MACD should move below the zero lines and points lower.

 

Entry

To enter the trade, wait for a bearish candle below the crossover. Try to avoid the trade signals formed after a big candle.

 

Stop Loss

According to the inventor, the stop loss should be at the 50 EMA level with a 10-15 pips buffer to avoid unusual stop loss hit.

 

Take Profit with the 2 Cross and MACD Trading System For MT4

The developer of this strategy suggests the ideal take profit for EURUSD is 60 pips in the H4 timeframe and 200 pips in the daily timeframe. For GBPUSD, the take profit should be 70 pips in the H4 timeframe and 250 pips in the Daily timeframe.

Experienced traders can also use trailing stop loss with this system but they should learn this technique in the risk-free demo account.

 

Summary

Let's summarize the 2 Cross and MACD Trading System For MT4:

• This trading strategy uses a market sentiment.
• All EMA's should indicate the same market direction in order to consider a valid signal.
• MACD Histogram is used as a trade filter tool.
• Stop loss is placed based on the 50 EMA
• Take profit level depends on the trading time frame
• The risk exposure must be low in each trade.

The 2 Cross and MACD Trading System For MT4 provide a strategic way to find reliable signals. If you are good at using this system, you can expect to deal with complex market data.

Download the complete system description and the files here:

FREE 2 Cross and MACD Trading System

Download the FREE 2 Cross and MACD Trading System for MT4.

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