When the market is trending

When the market is in a definite direction, it makes it easier for us to trade the 4h MACd strategy as the system is a trend follower by nature. As discussed in lesson 3, the market rhythm that we will be anticipating for, will be the price crossing over the 89 SMA and pull back to 21 SMA before continuing its direction.

EURUSD in an uptrend

Just look at how many times the price pulled back to the 21 SMA(Blue moving average). The market is in perfect rhythm what we would be looking out for. As you can see, price crossed 89 SMA at point No.1, pulled back to 21 SMA at points No.2,3,4,5,6,7,8 and 9. At every pull back to the 21 SMA, there is a trend continuation (TC) signal (indicated by the blue lines). That means you could make pips during these signals!

Enter the trade after the close of the signal bar. Set your Stop Loss (S/L) at the recent low (If go long, otherwise recent high for short trade) at least 3 candles back.

Always trade only 2% of your capital, do not trade more than that. To calculate your lot size without risking more than 2%, use this Excel Spreadsheet. Download Here

Set your stop loss to breakeven after +20 pips, alternatively, you can close half of your position and set the other half at break even point, locking 10pips profit.