MACD Day Trading Strategy

MACD Day Trading Strategy is a trend momentum system. Our strategy is based on 15 min time frame. Key Note*Always use the 15 min chart for our system setup. Lets get started setting up our indicators. Our First setup is with the MACD. Almost every charting platform has a macd Option. After figuring out how to add macd on your charts please input these coordinates “6, 64, and 128
this setup is known as our Fast Signal Now our second setup is with the same indicator just with a separate coordinate This indicator is known as our Slow Signal The Settings are “9, 64, 122” Here is a chart image with the two setups added.
MACD Day Trading Strategy
Now that we know how to setup our charts lets learn how to trade this strategy. As you can see we have setup both the macd settings on our chart if you look closely at the chart you will notice on the far right side next to both macd graphs there is a number highlighted in green. These 2 numbers are what we go by in placing our trades.
Determining a buy trade:
In order to get in a buy trade our macd fast signal (listed above) must be at 2 and our Slow signal (listed above) must be at a 0. So in briefing we look for our fast signal to be at 2 and only 2 and our slow signal to be at 0 and only 0.
Here is a quick example of finding a buy entry:
MACD Day Trading Strategy
Determining a sell trade:
Now to place a sell trade we do the exact opposite we look for the fast signal to be a -2 and only a -2 nothing else, and our slow signal to be a 0.
Here is a quick example of determining a sell trade:
MACD Day Trading Strategy
Setting initial stop loss at the previous swing high/low.
MACD Day Trading Strategy
With the example above we show a sell entry at 1.2823 and our stop loss at the previous high was estimated at 1.2838 Some Traders that follow my system have told me they use a trailing stop to try and catch bigger moves. I don’t personally trade this way but from my research it does seem possible. For every 15-20 pips profit they would move their stop loss to break even thus enabling them to have a trade open that is risk free.
Taking Profit Exit Strategy:
When i place my trade I generally set my Take Profit 10-15 pips away from my entry. If you determine that the trend is going to last longer then this range you can set your Take Profit to a higher level. Also you can implicate the trailing stop loss strategy listed above to leave your trade open longer. Everyone’s profit taking preferences are different I personally recommend sticking to the 10-15 pip rule as this is where I have seen the best results.
MACD Day Trading Strategy
Remember our key points:
This is a consistent pattern during NORMAL market conditions. NOTE: If market conditions are strong trending, flat or there are news releases, Do Not trade. You must have some experience in
the markets before you can understand these conditions. My golden rule: If you are trading and you are stopped out 2 times in a row in a trading session, turn off the computer and stay away for a
few hours. The market conditions were not right. This has happened to me before. It really does help to just walk away. You can’t get mad for being stopped out. It’s a part of the business that will always be there. The worst thing you can do is get mad, make crazy trades to try and get it back. I have been there, it is not worth it.

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