4 Hour MACD Forex Strategy
Welcome to the 4 Hour MACD Forex Strategy. This strategy is aimed at
simplicity as well as high probability trades. I have been in the equity market for
almost ten years now and in the forex market for two years. I learned very early that
forex trading is not for the shaky ones. One must have a tested and definite trading
strategy as well as well organized discipline to follow the strategy and execute the
plan as to the letter. One must be exact and precise.
Therefore I paper traded for almost two years and read everything I could lay
my hands on. I bought books and courses. I attend a 5 day live web seminar. All this
did not help me at all as it did not fit my style of personality and I just did not seem to
connect with all this different strategies. Over two years of watching the graphs with
different indicators, moving averages etc. I started to get a feeling for the movement
and motion of the market especially the EurUsd around certain moving averages.
It wasn’t till late last year that I discover a setting with the MACD that gives
easy to read signals on a regular basis on a 4 hour timeframe. I like the 4 hour
timeframe as one are not glued to the screen full time.
If you look at FIG 1 below you will see that there were 14 signals over a
period of 5 weeks. Within that period of FIG 1 the signals given were pretty good.
There are times when some signals does not produce positive results. I then had to
work on a filter system to only let me take the best ones. I found that the MACD
when moving in a certain way produces a 95% accuracy. I will show you later how
the high probability trades look like.
In FIG 1 the signals are shown and FIG 2 shows that an entry is made after
the 4 hour bar has closed and at the opening of the next bar.
In FIG 3 another 19 deals were shown of which the last one was not finished
yet so out of a total of 18 trades 5 were wrong and 13 were right.
As it is a 4 hour strategy it means sometimes setting the alarm cloc