Never miss a story from Walker England

Subscribe to recieve updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Walker England

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

Article Summary:Creating a Forex trading strategy does not have to be a difficult process. Today we will review a simple MACD strategy for trending markets.

It can be extremely difficult for new traders to finalize a trading strategy for trading the Forex market. The options for market entry are virtually unlimited, and it is often good to have a simple strategy on standby. Today we are going to review the basics of a simple MACD strategy, based on finding the trend then utilizing an indicator for execution.

So let’s get started!

Find the Trend

The first step to trading any successful trend based strategy is to find the trend! One of easiest ways to find the trend is through the drawing of a trendline. Traders can connect the lows in an uptrend and find a clear area of where price is supported. Below we can find an ascending trendline on the EURCAD.

Given the information above, traders should look to buy the EURCAD as long as it remains supported. If the trend continues, expectations are that price will remain above support and new highs will be created.

Learn Forex –EURCAD Trendline

A_Simple_MACD_Strategy_body_Picture_2.png, A Simple MACD Strategy

(Created using FXCM’s Marketscope 2.0 charts)

MACD Entry

Once a trendline is drawn, and a trading bias has been established traders will begin looking for areas to enter new positions. One of the easiest ways to find a technical trigger is through the use of an indicator. Below we can see the EURCAD daily graph, this time with MACD added. Since we have identified the EURCAD in an uptrend traders will look to buy when the MACD when momentum returns to the underlying currency pair. This occurs whenthe Red MACD line to crossover the Blue Signal line, prior to executing their orders.

Below you will find several examples of past MACD crossoverson the EURCAD. Note how only buy positions are to be taken on bullish crossovers as the uptrend continues.

Learn Forex – EURUSD & CCI

A_Simple_MACD_Strategy_body_Picture_1.png, A Simple MACD Strategy

(Created using FXCM’s Marketscope 2.0 charts)

Manage Risk

When trading markets, there will always be a degree of risk. When trading trends, it is important to know that they will eventually come to an end. In an uptrend like the EURCAD, traders may place stops under the established line of trendline support. In the event that price breaks under support, traders will wish to exit any existing positions and look for other opportunities.

---Written by Walker England, Trading Instructor

To contact Walker, email Follow me on Twitter @WEnglandFX.

To be added to Walker’s e-mail distribution list, CLICK HERE and enter in your email information.

Are you looking for an indicator to provide trading signals? Sign up for our free CCI trading course!CCI Training Course