(+) Swing Trade Strategies

MACD SWING TRADING STRATEGY

"Trading the H4 Timeframe using the MACD Histogram"

 TRADING STRATEGY

■ Style: Swing Trading Strategy

■ Name: MACD Swinger Trading Strategy

FINANCIAL ASSETS

■ Forex Majors | ■ Metals and Energy | ■ Stocks | ■ Indices

 TIMEFRAME

■ H4 timeframe (4-Hour)

 INDICATORS & SETUP

This strategy is applied using only the Moving Average Convergence Divergence (MACD) indicator.

At a Glance: MACD

The MACD (Moving Average Convergence Divergence) is a trend-following momentum indicator that measures the difference between two exponential moving averages—typically the 12-period and 26-period EMAs. It generates trading signals through crossovers between the MACD line and its signal line, as well as centerline crossovers. The indicator also uses histogram bars to visually represent momentum strength and highlights potential reversals through divergences with price action.

MACD Settings

Default settings are used:

• Fast EMA: 12

• Slow EMA: 26

• MACD SMA: 9

Note: You can optionally combine MACD with RSI or Stochastic to further confirm your trading signals.

 TRADING SIGNALS

This is how you can implement the MACD Swinger Strategy. It is a simple MACD-based method suitable for all traders.

■ (↑) Long Trades

1. The MACD histogram shifts from negative to positive.

2. After this shift, wait for 4 consecutive positive MACD bars.

3. When the 4th positive bar is confirmed, enter a long trade.

4. Set the stop-loss at the lowest recent price on the chart corresponding to the recent MACD histogram low.

■ (↓) Short Trades

1. When the MACD histogram moves from positive to negative, prepare for a short trade.

2. Wait for 4 consecutive negative MACD bars.

3. Once the 4th negative bar is confirmed, enter a short trade.

4. Set the stop-loss at the highest recent price on the chart corresponding to the recent MACD histogram high.

 TRADING ORDERS

■ Take Profit: The average take profit in H4 timeframe is 300-400 pips

■ Stop-Loss: The average stop-loss in H4 timeframe is 150-200 pips

■ Profit/Loss Ratio: 2

CHART: MACD Swinger

■ MACD Swinger Trading Strategy

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