MACD – Exponential Moving Average Trend Following Strategy!

Hello friends I want to share with you simple trend following strategy using MACD and EMA’s. If used correctly the strategy can easily generate around 75% success rate!

For this strategy we need two indicators: MACD and EMA

MACD is with default settings 12,26,9

Two Exponential Moving Averages with periods of 120 and 300

We need to follow few conditions:

  1. We use this strategy on 1 minute chart with 30 to 45 minute expiries
  2. Determine the overall trend if 120 Exponential Moving Average is below the 300 we are in a down trend and vice versa if 120 is above the 300 EMA it’s up trending.
  3. For down trend we wait MACD to turn positive (pullback) and immediately after MACD turns negative again we enter PUT for 30 to 45 min expiry. Vice versa if we are up trending we wait MACD to turn negative (pullback) and immediately when MACD turns positive we enter for call 30 – 45 min expiry.

Few more advices: Don’t use the strategy 30 min before or after major news events. Seek for good range between the two EMA’s. And use it mostly on London and USA sessions when markets are most volatile. Also, don’t forget to back test this strategy and use it on demo account. You should know that no matter how strong particular strategy is, you will need some time to master it and eventually to see good consistent results.

macd-ema-trend-1 macd-ema-trend-2

For further questions contact me on: (Ventsislav Velev)