Forex Multi MACD Ichimoku Trend Trading Strategy with Moving Average and ADX Indicator

High accuracy MACD forex trading strategy. Forex Multi MACD Ichimoku Trend Trading Strategy with Moving Average and ADX Indicator is very easy and high accuracy M15 forex trading system.

 
Although originally developed for use with stocks, the MACD oscillator is a common tool utilized in many markets, including forex trading. Trading signals are generated when various MACD crossovers occur and by MACD divergence. The technical MACD definition includes the computation of three moving averages, but only two lines are displayed “oscillating” about a “zero” line.

The MACD indicator is a trend indicator. This function can be ascribed to its moving average components. The histogram bars of the MACD are a measure of the strength of the trend. Combining these factors allow the MACD to recognize tops and bottoms of trends and hence reversal areas.

 

Usage of MACD Indicator

The indicator is listed on the MT4 as a momentum indicator. To attach it to the MT4 chart, click on Insert -> Indicators -> Oscillator -> MACD. The MACD indicator can be used in the following ways:

  • The MACD can be modified by the addition of a colour component to the histogram bars. This allows the indicator to recognize trend changes a lot earlier than the conventional indicator.
  • The MACD can also be used as a component of trading strategies involving other indicators.

The MACD is hardly used alone for trade signalling. This is because it is a lagging indicator. It is best used as a component of trading strategies.

 

Usage of the MACD in Forex Trading

How is the MACD used in forex? The MACD indicator usually provides three different types of signals:

  • The signal strength namely the strength of the trend. This is shown by the height of the histogram bars.
  • The direction of the trend. The native MACD shows this when the bars cross from negative to positive and vice versa. If you are using a coloured MACD histogram, then the colour change will indicate a change in the direction of the trend.
  • The second signal is the turning point of the price action. This is shown on the native MACD indicator as the cross of the signal line over the MACD bars. When the signal line crosses above the bars of the MACD, a sell-signal is given. When the signal line crosses below the MACD histogram bars, a buy-signal is generated. This has been used in one of the MACD strategies we have discussed earlier.
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As discussed, the MACD is not used alone as a trade indicator. It must be combined with another indicator as part of a trading strategy.

 

Multi MACD Ichimoku Trend Trading Rules

 

MACD stands for moving average convergence divergence and it’s a trending and momentum indicator. The indicator uses a MACD line, a signal line, and a histogram. A signal line is actually a moving average of the MACD line itself. Convergence occurs when the two lines move towards each other, and divergence occurs when they move away from each other.
 
Forex Multi MACD Ichimoku Trend Trading Best Time Frame : 15 Minutes, Currency pairs : any.
 
Forex Indicators:

  • exponential moving averages (26 EMA high);
  • exponential moving averages (26 EMA low);
  • ADX Indicator;
  • Icimoku indicator;
  • I Numers;
  • QQE indicator (5 smoothing with two exponential moving averages: 11 LW and 26 EMA).
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BUY Rules
  1. When price is above 26 EMA high and 26 EMA low (EMA channel);
  2. The price is above the ichimoku cloud indicator and the ichimoku cloud is above EMA channel;
  3. The QQE indicator (that is in subchart) blue line is above red line and green line;
  4. Stop loss at the previous swing;
  5. Peofit Target = 100 -150 pips;
  6. ADX upward above 30 line;
  7. Multi MACD H1 blue bar.

 

SELL Rules
  1. When price is below 26 EMA high and 26 EMA low (EMA channel);
  2. The price is below the ichimoku cloud indicator and the ichimoku cloud is below EMA channel;
  3. The QQE indicator (that is in subchart) blue line is below red line and green line;
  4. Stop loss at the previous swing;
  5. Peofit Target = 100 -150 pips;
  6. ADX upward above 30 line;
  7. Multi MACD H1 red bar.

 

NOTE:

Although there are three moving averages involved in the MACD calculation, there will only be two lines displayed, one moving obviously more slowly than the other. MACD period settings are changeable and can be customized to fit the trader’s tastes, but the typical settings are 26, 12, and 9, the period for the “signal” line, “EMA3”.



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