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TrendLine with MACD 12, 26, 9 – FX Strategy

TrendLine with MACD 12, 26, 9 Strategy trading strategy combines a mix of indicators and price action trading. This combination of trading methods gives rise to one of the most reliable trading strategies that one can trade. It however requires a bit of practice to get accustomed to this trading strategy. The trend line and MACD trading strategy works on all time frames.

Strategy Set up

  • Trend lines
  • MACD (12, 26, 9)

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Strategy Rules

Long Set up:

 

  • Connect the swing highs using the trend line
  • When price breaks the trend line, MACD must be above 0
  • Enter long with take profit of 40 – 50 pips with stop loss of 40 pips

Short Set up:

 

  • Connect the swing lows using the trend line
  • When price breaks the trend line, MACD must be below 0
  • Enter short with take profit of 40 – 50 pips with stop loss of 40 pips

Strategy Examples

Long Set Up

  • After connecting the swing highs with a trend line, we notice price breaking out from the falling trend line
  • We take a long position after the MACD rises above 0-line
  • Stops are placed approximately 40 pips lower while take profit is set to 40 – 50 pips
  • The above trade resulted in a profit

Short Set up

  • The trend line is used to connect the swing lows. Price then break out from this rising trend line
  • MACD also turns below the 0-line
  • So a short position is taken up, with a 40 pip stop loss and a 40 – 50 pip take profit level
  • Trade resulted in a profit

Conclusion

The trend line and MACD trading strategy is very simple and a straightforward trading strategy. The strategy is very basic and thus has a lot of scope for traders to modify this strategy to suit their requirements.

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