MACD INDICATOR FOREX STRATEGY | Gerrit Gerber | Skillshare

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MACD INDICATOR FOREX STRATEGY

teacher avatar Gerrit Gerber, Professional Forex Trader

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Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

7 Lessons (39m)
    • 1. Introduction

      2:02
    • 2. Using the MACD Indicator

      3:52
    • 3. The Aim of the Strategy

      2:03
    • 4. Buy Setup Rules

      4:28
    • 5. Buy Setup Trading Examples

      14:10
    • 6. Sell Setup Rules

      2:52
    • 7. Sell Setup Trading Examples

      9:22
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About This Class

Hi there and welcome to my class!

MACD Indicator Forex Strategy

This class is for anyone interested in learning a super easy and profitable Forex trading strategy.

By the end of this class you will have a clear understanding of how the MACD Indicator Forex Strategy works and will be able to implement it in the live Forex markets.

You will know how to make use of the MACD Indicator to determine possible buy and sell entries.

This class provides you with the exact buy and sell setup trading rules to use, and discusses it in a easy to understand fashion, for anyone interested in following along.

And then lastly, we go through various buy and sell setup trading examples in the live markets ,and I show you exactly how to determine your stop loss and take profit levels for each trade.

This class will tremendously improve your results in the Forex markets and has a high win rate that ensures you always have a statistical edge over the market!

So if you are ready to learn a new super easy and profitable Forex trading strategy, then this class is for you!

I look forward to connecting with you inside of my class!

- Gerrit

Meet Your Teacher

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Gerrit Gerber

Professional Forex Trader

Teacher

Hi there, my name is Gerrit Gerber and I'm a qualified Civil Engineer and a professional Forex trader from South Africa.

I am really passionate about the world of Forex, and have been trading the Forex markets for over 4 years now.

I love to discuss and teach Forex trading to all my friends and family, and I probably drive them nuts by now with all the Forex talk to be honest.

So that is why I decided to branch out to a much larger audience on skillshare, to connect with anyone who might be interested in learning more about Forex trading.

I look forward to sharing my passion, knowledge and experience in the Forex markets with you!

See full profile

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Transcripts

1. Introduction: Hi guys and welcome to this MAC D indicated for x strategy gloss of money on Skillshare for direct didn't know me. My name is harder cardboard and I am a professional for extra data from South Africa and I will be riding instructor throughout this class. So let's quickly go through what you will learn in this class of mine. So to kick things off with, I'm going to show you exactly how to make use of the MAC D indicator. Moving on to the specific aim of this MAC D indicator forex strategy. Then I show you the exact by setup trading rules that specific driving setup needs to adhere by before you can even consider entering a by position using this MAC D indicator for x strategy. Moving on, I show you some bias it up trading examples in the live markets just to bring the entire buys it up trading rules full circle. And it gives you a better understanding of how to make use of the MAC D indicator for by setups. And then I show you also the specific cell setup trading rules that might be indicated for x strategy. Setup needs to adhere by before you can sell a specific forex currency pay. And then as well, I go through some, I'll set up trading examples in the live forex markets. So just some quick Clause requirements for the specific MAC D indicates the Forex strategy clause of mine is just to have a basic understanding of four extra padding. So no big deal. If you are a complete novice strider, I have you covered just like look at some of my other classes here on Skillshare to get a better understanding of what for extra writing entails. So if you are keen to learn a bit more about how to implement the Mac, the Forex trading strategy in your own Forex trading style. Then I look forward to connecting with you inside of my class. 2. Using the MACD Indicator: The moving average convergence divergence, or the MAC D indicator, is simply a trend following and momentum indicator. So it takes a look at the current price action happening in the market to share you whether the market is on an uptrend or downtrend, as well as to give you an indication of the momentum taking place in the market at the moment. So the MAC D indicator consists of the following components. We have the first being the Mac, the line which is simply calculated by subtracting 16 exponential moving average from the 12th exponential moving average, and is shown as the blue line on trading view by default. Then the second component for your Mac, the indicator is your signal line, which is then calculated as the nine exponential moving average of the MAC D line. So again, it's shown as the orange line on trading view by default. Then the third component of your mat indicates is then your Mac, the histogram, which is then calculated by subtracting your signal line values from your map D line values. Now, I know what you're thinking. There's a lot of math behind this MAC D indicate how ever you don't know, you don't actually know exactly how it works to implement the strategy. I just thought I'd share with you some background into the different components of the Mac, the indicator. So don't worry, there's no math involved for you to do. You just need to follow the different pie and sell setup rules for you to implement this Mac, the strategy. Now, if the MAC D line is above the signal line, then the Maccabees diagram is shown above the baseline or the 0 level and is displayed in green. So if the MAC D line, which is then your blue line on trading view over here, is above your signal line, which is your orange line on trading view by default. Then the histogram is shown above the baseline. So the 0 level, which is over here, this is the advice line of your Mac, the histogram, and it is displayed in green like this. Similarly, if the MAC D line is now below the signal line, then the history graph is shown below your baseline. We 0's level and is displayed in rate. So as you can see from this example of the year, the blue line we'll make the line is now below your signal line, which is your orange line on trading view. So your histogram is displayed in red and is below the baseline or the 0 level of the histogram. So that is how your Mac D indicates the works. Just a quick note that these different components, or displayed as your blue line being your Mac D line, your orange line of signal line. And this is the default colors used on trading view. However, when you are trading on a different trading platform, then these components might be displayed in different colors. So just be aware of each specific trading platform that you use, makes use of its own unique colors. 3. The Aim of the Strategy: The IMF, the Mac D indicates the strategy is deemed to determine way possible trend reversals of life it takes place in the market. And then for you to try this price reversal setups when they do appear. Now these possible trained reversals are shown on the map D indicates when the MAC D line crosses the single line. So each time the Mac D line crosses the signal line, it indicates a possible trend reversal setup for you to take. So random MAC D line crosses above the signal line. It indicates a bullish signal, which is Dana, possible buying opportunity. Likewise, when the MAC D line crosses below the signal line, represents a bearish signal and can mean possible selling opportunities. So again, using this example via the Mac D line crosses above the signal line. So this can then be a buying opportunity for you into the strike to the upward awkward side. Likewise, when the MAC D crosses below the signal line, it can give a bearish signal and then indicate possible selling opportunities for price to move lower. Now, however, you need to try the Mac D indicator in conjunction with other technical analysis tools that compliment the price action in the market to ensure that you only take the highest probability tribe setups. So you can't just simply try to enact the indicator on its own. You need to make use of the Mac P in the crater in conjunction with other technical tools that we are going to be discussing right now. For your Mac, the indicated strategy. 4. Buy Setup Rules: For, by setups, you have your own specific rules to use your Mac D indicate that in conjunction with other technical tools. So the first rule states on your bio setup that the minute 30 timeframe should be on a clear uptrend with current market price being above the 200, simple moving average. So in this example below this red line of the issue to a 100 simple moving average. As you can see, the price of the price action in the market is above the 200 simple moving average. So this indicates an uptrend. So if this appears in the market in your first rule is made for you by setup. Then the second rule states that the MAC D line should cross above the signal line to indicate a buy signal. So when the MAC D line crosses above the signal line over here like this. At this cross over here you can see the MAC D line crosses above the single line, which is then indicating a buy signal. So that's then your second rule for your bio setup. Then the third rule is that the Mac, the second line crossover should be below the histogram baseline. So this cross over via should happen below the baseline of your Instagram. And that's very important. So when all three of these by a set of rules or made your, um, minute ferry timeframe isn't a clear out during the market is above 200. Simple moving average your Mac D line process above the signal line. And to indicate a buy signal and this crossover takes place below the histogram baseline. Then you can proceed with your entry, stop loss, and take profit rules. Now, the entry rules types that you can place a bio, the at the candles, the closure of the crossover on the Mac, the indicator. So after the crossover happens, you can then place your order at the scandals disclosure. So exactly at this crossover level, if you just look at the most recent candle stick in the market, which is then this candlestick. So often the scandals, the clauses. You can then enter your by the similar for your stop-loss, which you can just place below the reason Swing Low candlestick of the train. So this is your swing low of this trend, as you can see, off to this impulsive wife, price is currently making a corrective wife or pulling back into this to a 100 simple moving average. So this point over here is the new swing low in your training. So you can simply place your stop-loss a few pips below this swing low. And then lastly, you can place your type profit 1.5 to two or away from your entry. So this is your one or all your risk and you can place your type profit anywhere from 1.522 are away from your entry. So ideally again, 1.5 or ratio works very well for the map. Indicate the strategy again. So this is your Pi setup rules. So if a specific shot at yes to all of these rules, then you can enter your trait and you can make use of this map D indicate the strategy. So let's take a look at some of these examples on the markets to give you an indication of exactly how to implement your bitrates using this MAC D indicates a strategy. 5. Buy Setup Trading Examples: So before we take a look at a few by setup examples using the smacked indicate strategy. Let's just first at the required technical tools to our chart. This is the euro-USD shot and you simply add your moving averages on this indicators and strategies. Tap on trading view. You can type in moving average. And we are going to change this input for moving average day into 200. And style. I'm just going to make mine rate and I'm going to make mine this thickness just to clearly indicate this to a 100 symbol moving average. So now we need to add on Mac D indicate as well. So you can similar Lee just type in Mac DIE via click on Mac D and then it's automatically given for you and the different MAC, the lines and signal lines as well as the Instagram, is automatically calculated for you on this minute ferry timeframe. So just watch if I click the four hour timeframe, then the Mac D is automatically updated as well. However, we will be trading on a minute ferry timeframe. So this is all you need to do before you can implement this Mac, the indicated strategy. So for our first by set-up example, we will be using this year is the shot. Now as you can see, I'm already on the minute 30 timeframe. I have my 200 simple moving average in place as well as my Mac D indicated. Now, the first rule states that we need to make sure that we're on a clear uptrend before we can proceed with the remaining rules of advice it up. And to do that, we will use or 200 simple moving average. So this is the red line over here. And the market is on a clear uptrend when the current market price or the current price action is above or simple moving average. So as you can see, the current market is over here at the scandal stick. And it is above or 200, simple moving average. So this thin indicates that beyond a clear uptrend and we can proceed with the remaining rules. So rule number two styles that we need to write for the Mac, the line to cross above the signal line. So on this Mac D indicate a via. We should provide for a clear cross over to appear in the Moffett. The Mac D line should cross above or single line to indicate a possible by entry. And this crossover should happen below the baseline or the 0 level of histogram. So we're in the second, third rules or made as well. We can then proceed to bracket order. So let's just play this, mock that out a bit and wait for a clear crossover between the MAC D line and the signal line. So just writing for that crossover or no MAC D indicator before we can end the striding setup. So as you can see over here, there is a clear crossover between the MAC D line and the signal line. The blue line is crossing above the orange line. And this crossover is happening below this baseline, below this 0 level on the Mac D. So this the means or second, third rule, or mate as well. And we can then proceed with intruder, stop-loss order and all type profit older. Now. Or entry rule states that we can simply place a buy order at the candles, the closure of the crossover. So often it's clear that the Mac, the line has crossed above the signal line. You can take the current candlestick, which is this one over here. And you can simply place your BI or the wherever the scandal clauses. So OVA can simply take place, you buy order. So to assist me, Let's just implement a quick ghostwrite for this long position so you can just place your order at the scandal closure of the day, your stop-loss being placed below this swing of the string. So this corrective wave or the spool back is just retesting this to a 100 simple moving average. And just think of the simple moving average as a support for price to bounce and move. I, I'm sorry, you can just place your stop-loss a few pips below the swing live in the market. However, because this Swing Low, just live off the string, love is so close to 200 moving average. I'm going to increase my stop-loss just a few pips to put my stop-loss below this very strong to a 100 simple moving average as well. Surette, If price decides to go lower, it can then just react to this simple moving average and still continue. I say that is why I place my stop-loss. Just a few pips. Be loudest, simple moving average, just to ensure that if price decides to go lower, then this is a very strong support area and Australia, it can still end up being profitable. So just keep that in mind. If you're Swing Low is very close to your moving average are ever, you just need to make sure that your stop loss is below this string Lao-Tzu, maybe two or three pips, whatever works for you just below this swing. And then using this risk reward to, you can just drag the stop until you are satisfied with your risk reward ratio. So let's try and go for 1.5 like that. So this will then be sufficient for outright. So now that we have or exact bracket order, all of our rules are made to see how this Pi setup would have played out. So we are then immediately in the striped and it's moving a bit slowly, but it's still five at the moment. So let's just wait until all type profit area is reached and then we can proceed to exit this trait. So as you can see, a V or target area of as heat or type profit was it with the strike? So this was a bit of a slower tried there was it was a slower move to the upside. However, we were still profitable in the end. And this was successful, tried for you to have taken in the market. So that is thin. First by set-up example. So let's move on to another example. So using the same urea is the chart again. For another example, you can see from the minute ferry timeframe that the current market action over here is above or 200 simple moving average. So our first rule is the inmate for bio setup. Likewise, you can see that clear cross alpha is taking place on the Mac, the indicated the Mac, the line is crossing above the signal line. And this cross over is happening below the baseline or the 0 level of the histogram. So first rule, second rule, and third rule or mate, and we can now proceed to enter this bitrate. So again, just implementing this long position ghostwriter, the scandals, the closure is then your by entry, fuel stop-loss being below this swing of the string. However, this love of the sprinkler is again very close to 200 moving average. So again, I'm just going to increase my stop-loss by a bit to ensure that is that my stop loss is at the best possible position to ensure that my risk is managed. So let's just drag the stop-loss too few, but below or 200. Simple moving average. So our stop loss is then a total of 56.3 pips. So you can, this is 0 up to you, whatever works basically you just ensure that your stop loss is a few pips below this swing low, at least I'd just like to be conservative and place my stop-loss below this 200 simple moving average as well, seeing as it's very close to entry. So then, or target area is simply, let's just go for two. Or in this example, let me just zoom out that she can then you can see more clearly go for two or which is over day. So let's see how this bitrate would have played out had we taken it with or Mac D indicated strategy. So let's just have a life recap of the strike. So we are consolidating a bet and steadily moving higher and higher. So very small candle sticks are being formed. And now we just wait until the day we closed out in profit again. So this is another successful By setup and as you can see, price just barely dip below or entry. So it was in profit for the entire duration of the strike. And this is again, another successful example of a setup using this strategy. So for a lost by set-up example, we will be using this Australian dollar, US dollar chart. And from this minute ferry timeframe, you can see that the current market price is clearly above or 200, simple moving average. So this is an indication of a clear uptrend, which means our first rule is then mate. However, we need to write for a clear crossover to take place below this baseline of the histogram for us to then proceed to enter this buy order. So let's just wait for this cross over to take place by forwarding this market a bit. And as you can see, the clear crossover taking place, the Mac D line is crossing above or signal line, which is taking place below this baseline of the histogram. So let's proceeding to enter this trade at market price. Exactly at this scandal closure of the day. Stop losses being plies below this screen over here. And I'm going to just keep my stop-loss below the string low, seeing as this 200 and simple moving average is a bit for now. So currently it's 26.6. But if we move it below this 200 moving average, then we are adding another 14. So that drastically changes or risk to reward ratio. So let's just undo that again. So this is sufficient stop-loss for us and of risk to reward will then just be one or 1.5 like that. And those will then be sufficient bracket order. So let's see how by all the plays out. So we are in and out. So this was a very quick, right? 1, 2, 3, 4, 5, 6, 7, 8, candlesticks. So we were entered into the straight. Again. The price just barely below entry. And we took profit over here. And this was a successful by trade as well. So using this MAC D indicator to give us a clear indication that we are on a strong uptrend, we can then proceed with by setup rules. And we can only take the highest probability tries to ensure that we are profitable in the Forex market in the long run. So that concludes the examples of the by setups. So let's now take a look at the cell setup rules for the strategy. 6. Sell Setup Rules: So for our cell set up, the first rule states that the minute 30 timeframe should be on a clear doctrine with the current market price being below the 200s and ball moving average. So this current market price action over here should now be below or to a 100 simple moving average to indicate a clear downtrend in order for us to proceed with the remaining cells setup rules. So the rule to the insight that the Mach V line should cross below the signal line to indicate a sell signal. So at this cross over, the map D line now crosses below or signal line to indicate a possible cell signal. And this cross over shoot then type place above histogram baseline. So if this crossover OVS takes place above histogram baseline and we are in a clear downtrend, then we can proceed with all sell orders. So the entry rule states that you can place a cell or the candlestick closure of the cross, the Mac D indicator. So with this crossover takes place, you can then place a cell or the exactly at the current candlestick and exactly at the candlestick closure. You can then place your injury or your cell or the with your stop loss being placed above the recent swing high candlestick off the train. So we, this market BU back into this to a 100 simple moving average. It forms this swing I trained and you can simply place your stop-loss a few pips above the screen hi, with your type profit in being either 1.5 to two or away from your entry. So again, this distance over here is your risk or one or, and you can then decide whether you want to place your take profit 1.5 to two or away from your entry. So that covers your cell setup rules. And if this specific setup appears in the market and it follows all of these setup rules, then you can enter this trade using this MAC D indicates the strategy. So let's go through some examples of cell setup in the market. Using our map D indicates. 7. Sell Setup Trading Examples: So for our first shell setup example, using this map T indicates a strategy. Let's take a look at this US dollar, Canadian dollar shot. So on this timeframe, you can see that the current market price is below 200, simple moving average. So this indicates that the market is on a clear downtrend. So first rule is the MIT using or Mac D indicate now you can see that crossover is currently taking place. The Mac D line is crossing below or signal line. This crossover is also happening above or baseline 0, 0 level of the histogram. So rule number 1, rule number 2, and rule number 3 or mate for sale setup. And we can thus proceed with or sell orders. So making use of this short position option on trading view, you can simply enter your short right at this candlestick Laurasia way. This cross appears on your Mac Dene guide with your stop-loss being above your swing of your trained. And I'm just placing my stop-loss above this 200 simple moving average as well, which is now acting as a strong resistance for price to taste. And then likely it lower again, with our target being 1.5 or a wife from entry. So let's just drag this box 2 until the point 5, 0. So we are risking 15.5, perhaps surprisingly 16 Pepsi to make 23 pips. So this is a good trade setup. So let's just see how the strike would have played out. So prices immediately moving lower, Fiverr. So let's just write foreclosure and Clausius everyday. And we are on target area is heat via and be closed out after the strike in profit. While browsing this US dollar, Canadian dollar chart, looking for possible cell setups using this MAC D indicate the strategy. You notice that the current market price on the chart is well below the 200 simple moving average, indicating a clear downtrend. However, on the Mac D indicator, then spot any crossovers happening between the D line and the signal line. So you just decide to patiently wait for a possible cross over to appear on the Mac DPT shot before you decide to enter, you say, I'll say top and off the field, candlesticks. You notice this nice crossover taking place on the Mac D. And you see that the map D is now crossing below this signal line and this crossover is happening above the baseline or the 0 level of our histogram. So all off, first three rules on make. And you are now happy you can now enter this cell trait to the downside. So you make use of this short position two on trailing view to determine your risk and reward for the specific trade. And you know, to enter you sell order exactly at the closure at this crossover on the Mac D indicator with your stop-loss just above this swing high over here. And you take your reward to 1.5 or are in the market, which is over a year. And you now have your complete bracket or the implies with a 17.8 risk, which you use to determine your exact position size for the cell trait. And you are now good to go. You have entered the stride. So let's see how the strike plays out. So immediately, aggressive candlestick follows, and then we'll exit out of the strike. So this was aggressive candlestick followed by some corrective candles. As you can see, either the base, which is completely in control, and in the next rate candle, your profit area was it. And you successfully exit out of the strike. And you were happy man. You smiling all the way to the bank. You bragging with your friends about just how good the strategy works. And you now, we'll implement the strategy whenever it appears in the market. So let's take a look at our third and last cell setup example using a different currency pair. So while going through this year-old Japanese yen shot, you spot this absolute beauty of Excel setup. And you know from past experience that you have very high when write using this MAC D indicates a strategy and inside yourself, Screw it. I'm risking the form. I'm going to withdraw my entire pension fund and placing it on this one cell setups, right? And if it tends out to be profitable, I'm going to bind myself and my entire family all mentions five Lamborghini is I'm going to quit my day job, become a full-time for extra travel the world and try it from the beach, sipping margaritas. And then before you can enter the cell trait, you wake up from your dream because that is only a dream guys. And please, please, please then rescue form, always implement sufficient risk management, 2% risk on each tray that you take. However, the cell setup rules of very good for this particular trait, you see that the current market price is below the 200 simple moving average, indicating a clear down train set of screw of self setup is made. Likewise, this crossover via is happening above the baseline of a histogram. So the first three rules of sufficient and we can proceed with a sell order. We can proceed with rescuing the foam guys 2%. So entering this ghostwrite straight again at this closure of the disclosure of the scandal stick of this crossover with your stop-loss being above the string i of the string, as well as this 200 simple moving average if you want to. And then your revote or you target just being about 1.5 or away from your entry. So something like this will be sufficient. And then let's just see how this short trait plays out with a, you would have been able to buy yourself mentions and Lamborghini is and quit your day job. So let's see what would have happened if you risk the entire form, if you risk your pension fund on this one tray. So playing out in real life and bam, you are famous, you are, you are rich. You are the base for X-ray in the world. Your quit your day job tomorrow though, guys. But this was a very good sale set up. 1234 candles. You're in, you're out, and you're on your way to the bank, on your way to quit your day job to travel the world. So this was a successful trade. We exit in profit over here. And this was the third cell setup example using this MAC D indicate a strategy. So just see how extremely easy the strategy is and how frequently to PS throughout the day. I can probably say that there's about 15 to 20 good setups for you to take each month. So there's really some good profits to be made using this MAC, the strategy. So that concludes it. In for Mac, D indicates the strategy and I hope you guys can implement the strategy we need to PS in the live markets.