Forex Engulfing MACD Pattern Trading Strategy
Forex Engulfing MACD Pattern Trading Strategy:
The Engulfing pattern is reversal pattern. It is made up of two candles that
are 2 different colors; red being a downtrend candle, and green being an uptrend
candle. This particular pattern is formed after a clear downtrend in the market. This
candle ideally opens lower that the 1st day’s close, then ideally closes higher than
the 1st day’s open, which will show the green candle completely engulfing the
previous red candle of the day before. The candle for the previous day shows that
the trend was losing momentum, the large body shows that the new direction has
started of with strength.
Here engulfing pattern use in trend trading with trend line and MACD.
Time Frame h1 or higher.
Financial markets:any.
Metatrader Indicators:
Engulfing Pattern indicator;
Trend line indicator (CCI50 , ATR 5);
MACD 2line 12, 26, 9.
Trading Rules Engulfing Pattern with MACD
Buy
Engulfing Pattern arrow
Trend line indicator blue line;
MACD 2 line crosses upward.
Place a pending buy order at the high of the candle with arrow.
Sell
Engulfing Pattern arrow
Trend line indicator white line;
MACD 2 line crosses downward.
Place a pending sell order at the high of the candle with arrow.
Exit position
Profit target depends by time frame, ratio stop loss 1.15.
Stop loss on the previous swing high/low.
You can use this template also with only Trend line and MACD
Buy
Trend line indicator blue line;
MACD 2 line crosses upward.
Sell
Trend line indicator white line;
MACD 2 line crosses downward.
In forex a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets. The main reasons that a properly researched trading strategy helps are its verifiability, quantifiability, consistency, and objectivity.
For every trading strategy one needs to define assets to trade, entry/exit points and money management rules.
How to install Forex Engulfing MACD Pattern Trading Strategy?
- Download Forex Engulfing MACD Pattern Trading Strategy.zip
- Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
- Copy 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 strategy
- Load indicator on your chart
How to uninstall Forex Engulfing MACD Pattern Trading Strategy?
To shut down an indicator, one has to remove it from the chart. At that, its drawing and recalculation of its values will stop. To remove an indicator from the chart, one has to execute its context menu commands of “Delete Indicator” or “Delete Indicator Window”, or the chart context menu command of “Indicators List – Delete”.
Download Free Forex Engulfing MACD Pattern Trading Strategy
