Hey everyone, I’m going to share the simplest and proven profitable trading strategy with a high win rate. So, without further ado, let’s dive right into the strategy.
In this trading strategy, we’ll be using two indicators, namely MACD and Stochastic Oscillator.
This trading strategy is incredibly powerful because it’s easy to implement, thanks to its straightforward concept. It’s this simplicity that has enabled its users to maximize profits in the stock and Forex markets.
So, here’s how the strategy works.
The first step is to determine the current trend. This can be done by observing the MACD Histogram.
- If the MACD Histogram is below 0, then the current trend is bearish.
- If the MACD Histogram is above 0, then the current trend is bullish.
how to determine if a pullback has ended and the trend will continue?There are two important things to consider when it comes to pullbacks.
- First, we need to evaluate if the pullback is big enough to offer a greater reward compared to the risks involved in trading.
If the pullback is not strong enough, it’s better to disregard it because the potential profit is usually small as well. That’s why in this strategy, we only enter the market when the ongoing pullback is substantial.
Now, how do we determine if a pullback is significant or small?
The answer lies in using the Stochastic Oscillator. If the market’s Stochastic Oscillator is showing a bullish signal and it experiences a pullback that drops below the 50 level, then that pullback is considered significant.
On the other hand, if the Stochastic Oscillator experiences a pullback but remains above the 50 level, then the pullback is considered small and doesn’t require much attention from traders.
The market is currently in an uptrend, which is indicated by the MACD histogram being above 0. As we discussed earlier, when the MACD histogram is above 0, we focus on finding BUY signals. The most advantageous time to enter a BUY position is after a significant pullback.
In this case, you can observe that after the market experiences an uptrend, as shown by the MACD histogram above 0, the price starts to decline significantly. This is evident by the Stochastic oscillator dropping below the 50 level. It’s important to note that despite the price decrease, the MACD histogram remains above the 0 level. So, this significant price drop is known as a pullback or price correction.
Once this pullback comes to an end, it provides an excellent opportunity for a trader to enter the market by opening a BUY position. Remember to place your stop loss below the swing low and set a profit target that is three times your risk.
As you can see, the price swiftly rises following the pullback, indicating a continuation of the bullish trend.
- Download “ForexWOT-MACDpullback” (Zip/RAR File).
- Copy mq4 and ex4 files to your Metatrader Directory …/experts/indicators/
- Copy the “ForexWOT-MACDpullback.tpl” file (template) to your Metatrader Directory …/templates /
- Start or restart your Metatrader Client.
- Select Chart and Timeframe where you want to test your forex system.
- Right-click on your trading chart and hover on “Template”.
- Move right to select “ForexWOT-MACDpullback” trading system and strategy.
- You will see the “ForexWOT MACD Pullback” is available on your Chart.
As we’ve observed together, this trading strategy has proven to be exceptionally powerful. It is straightforward to comprehend, easy to implement, and boasts a high probability of success. You may recall the saying, “The greatest ideas are the simplest,” and that applies precisely to this trading strategy. By applying a simple trading strategy, we can maintain discipline in following the established trading rules.
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