Indicators Required
1) 200 EMA
2) MACD (with default setting)
This indicator can give about the idea of a true trend. 200 EMA is very profitable mt4 indicator. The strategy is a mix of 200 EMA and MACD. If you get any signal in daily time frame from this strategy, then you can get minimum 100 pips and further it can even give you more than 500 pips also
Buy Signal:
When candle cross 200 EMA from lower to upper and at the same time MACD is above 0.0 level, then you can take buy entry. If MACD is below 0.0 level, then you have to wait from MACD confirmation. When MACD goes upper 0.0 level, then buy signal will be confirmed.
Sell Signal:
When candle cross 200 EMA from upper to lower and at the same time MACD is below 0.0 level, then you can take sell entry. If MACD is above 0.0 level, then you have to wait from MACD confirmation. When MACD comes down to 0.0 level, then sell signal will be confirmed.
Time frame: Daily
Currency pairs: All pairs ( Try mainly major ones as they have Good momentum)
Take profit and Stop loss: Stop loss should be placed below 200 EMA for buy entry and above for sell entry. You can set stop loss with your risk ratio. If you target 1:4 risk ratio and if your take profit 400 pips, then you can set 100 pips stop loss. For higher time, take profit should be more than 200 pips.
***Be Sure***
Though this is profitable strategy, you can loss if you follow this strategy in ranging market.
So you need :-
* Practice this strategy in demo account before trading in real account.
* Proper money management for following this strategy.
* Should not take more than 2-3% for every trade for this strategy.
