Double MACD Trading

Double MACD Trading is a trend-momentum following forex strategy based on two MACD.

Time Frame 15 min or higher.

Currency pairs: EUR/USD, GBP/USD, AUD/USD, USD/JPY, GBP/JPY, USD/CHF, NZD/USD.

Indicators

first MACD (3, 5, 3)

second MACD (12, 26, 9)

Trading Rules Double MACD Trading

First rule for Double MACD Trading

We only Long entry when the lower MACD (that’s the one with the 12,26,9

settings) is ABOVE the 0.0 line.

We only short entry when the lower MACD is BELOW the 0.0 line.

Second Rule for Double MACD Trading

If the l MACD (12,26,9) is ABOVE the 0.0 line we look for the short  MACD ( with settings 3,5,3) to cross BELOW the 0.0 line and then ABOVE the 0.0 line.

It is the exact opposite for a short entry.

If the MACD (12, 26, 9) is BELOW the 0.0 line we look for the MACD (( with settings 3,5,3) to cross ABOVE the 0.0 line and then cross back down BELOW the 0.0 line.

Third rule for Double MACD Trading

when the Rule #1 and Rule #2 met we are then finally triggered into a trade if Rule #3 is met.

- If we get buy on Rules #1 and #2, we are ready to buy, but we only buy if the close is in the upper quarter of the candle.

- If we get a sell on Rules #1 and #2, we are ready to sell, but we only sell if the close is in the lower quarter of the candle.

See this example of a BUY signal:

The stoploss place it a few pips below the low of our BUY candle; or place is a few pips above the high of our SELL candle.

How to make profit.

If you trade 1 lot standard your account then you will exit when your profit is equal to the number of pips you risked. For example:

if you trade two lots, you can exit the first lot at 1x the stoploss; and exit the second lot at 2x the stoploss. See the picture below for example.

This is method is very profitable with a high percentage of winners.