I have always been looking for good strategies on the net and the following is a strategy I got from forexfactory.com forum. This was submitted by Phillip Nel, one of the members of the forexfactory.com forum and it looks very good. It is mainly based on MACD indicator with specific settings. The author of the strategy has documented the strategy very well explaining different entry possibilities using this strategy.
Indicators used in this strategy:
- Moving averages
The author has mentioned that the he tried only the above two currency pairs. We can try it for other currency pairs as well to check how it is working. (It seems from the discussion forum that, traders have been using this strategy for other currency pairs also)
- 4hr chart
Trade Entry possibilities:
The trade entries are mainly using different formations on the MACD indicator. The following are the main trade entries the author has explained.
- Lower highs
- Higher Lows
- Trend Continuation
- Head and Shoulders pattern
- Reverse head and shoulders pattern
- Double tops
- Double bottoms
- MACD comes down towards the zero line and turn back up
- Round bottom
- Round top
The strategy also considered the price levels where normally prices reverse, trend line breakouts, channels etc., the common forex trading techniques.
To check the strategy, download the pdf documents uploaded by the author. They are in the original post of the author. They are named as
- 4 Hour MACD Forex Strategy.pdf
- Planning your Trade.pdf
The first document explains the strategy with a lot of examples and second one is a document about planning the trades.
The strategy was submitted in Jan, 2007 and traders are still discussing and using this strategy. The author, Phillip Nel, is still supporting this thread and uploading videos also sometimes. Check this strategy and see how it is working. I will demo trade it first and present the results next week.