In this article, I want to tell you about a simple yet effective MACD Blaster Pro indicator . It can be used to trade any currency pair and on different timeframes. The algorithm is based on trend indicators. The recommendations of this technical analysis tool are displayed on the chart in a separate window as two components: MT1 (MACD Strength) and MT2 (MACD Smart). They have different colors (red and green). When both components are painted in the same color, this is a signal to open a trading position. Green – buy, red – sell. If the colors are different, we stay out of the market. It’s that simple. It’s time to see how the indicator looks on the chart:
To improve trading efficiency, I recommend you use an additional indicator. MACD Scalper is also a modified version of MACDIE. It is a histogram familiar to all of us. The bars are colored yellow and red. The combination of the signals of these two indicators gives the best trading result.
Market entry rules
We open buy deals if:
a yellow arrow appeared on the chart.
We open sell trades if:
MACD Blaster Pro is colored red;
the MACD Scalper histogram is red;
a red arrow appears on the chart.
And now – about stop loss and take profit.
To set stops, we focus on local extremes. When buying, this is the nearest minimum, while selling – the nearest maximum. As for the take profit, the best option would be to select its size for each currency pair and a specific TF. This is done on a demo account. But you can, of course, act differently. For example, we determine the size of the SL in points and multiply it by 2 or 3. This will be the size of our TP. You can also use a trailing stop. The choice is up to the trader.
And we must not forget about the observance of MM. Do not risk more than 5% of the deposit amount in one transaction.
The MACD Blaster Pro indicator together with the MACD Scalper shows very good trading statistics. But this does not mean that you need to immediately trade on their signals on a real account. We test them in demo trading, make sure of their effectiveness and start earning.
If you are interested in the technical analysis tools that I talked about today, you can download their files from the link below: