Advanced MACD Strategy - Forex Market Stop Loss Take Profit Price

Advanced MACD Strategy

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Advanced MACD Strategy

Fifty Ninth session of Forex Training

Welcome back to Forex professional training in a financial market.

In this session Advanced MACD Strategy will be studied.

Advanced MACD Strategy

Advanced MACD is appropriate for in range market, while it generates false signals on volatile markets that would result in capital loss.

MACD property values should be 25, 41 and 21.

Advanced MACD generates signals whenever the signal line crosses the bars towards the top or bottom.

Trader can apply Advanced MACD on all symbols with range markets especially on EURUSD and GBPUSD.

A Buy order can be placed when bars and signal line are under level 0, and the signal line moves under the bars.

A Sell order can be placed when bars and signal line are above level 0, and signal line moves higher than the bars.

Advanced MACD Strategy - Trading Signal by Forex Market Trading Patterns and Indicators

Take Profit and Stop Loss prices

Take Profit value is between 22 and 63 pips based on other confirmations and type of candle pattern on the entry price.

Stop Loss price can be determined with different methods:

  1. SL can be placed on the spot where signal line passes the bars again.
  2. SL can be specified based on the analysis of future major calendared news.
  3. SL can be 21 to 40 pips away from the entry price.

Advanced MACD can be combined with RSI, Stochastic and candlestick patterns for more reliable signals.

On GBPUSD chart of MT4 platform, in H1 timeframe a trader can detect a point in which signal line moved lower than bars, as well as Engulfing Bullish candlestick on the market trend, so a Buy order can be placed on this spot.

Advanced MACD Strategy - MetaTrader Trading Platform Price Chart - Moving Average Trend Lines

Another example, signal line crossed the bars towards the top and a powerful Bearish candle has formed, so a Sell signal was generated.

In this example, signal line passed the bars towards the bottom when a Piercing Line formed in the market trend, thus, trader could place a Buy order on this point.

Another example shows that whenever a signal line crosses bars on a certain spot where a powerful pattern or candlestick forms, trader can place an order.

That concludes this session, until next time and another session take care.

Linkages & Notices

You can also view the video of this session available on the PFOREX Financial Video tutorials.

You can also find the video of this session on PFOREX YouTube Channel.

PFOREX Assist app provides BEST & FREE trading signals and market analysis. PFOREX Assist is available on App Store (iOS version) & Play Store (Android version).

The PDF file of this session is also available.

PFOREX Educational materials in text and video formats are developed by PFOREX Department of Education to enhance and improve investors’ knowledge and trading skills. Due to high risks and volatile fluctuations in financial markets, traders and investors must develop their trading skills and knowledge. It is strongly recommended to apply Risk and Capital Management when trading in financial market.



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