High accuracy “MACD Volatility Quality Forex Trading Strategy” – The Moving Average Convergence Divergence (MACD) is an oscillator type indicator that is widely used by traders for technical analysis (TA).
Take a look at the image above. A potential BUY signal is generated when the MACD histogram above the MACD Signal Line and a potential SELL signal is generated when the MACD histogram below the MACD Signal Line.
MACD is a trend-following tool that utilizes moving averages to determine the momentum of a stock, forex, cryptocurrency, or another tradeable asset.
- Time Frame:
- M5 (Scalping)
- M15, M30, and H1 (Intraday)
- H4 and D1 (Swing Trading)
- Currency Pairs: Any
- Volatility Quality – Zweo line GZ
- Non-Lag MA V7 M
- Vertical line Move with Price
- Download TraderVersity.Com-MACDVolatilityQualitySystem (Zip File)
- Copy mq4 and ex4 files to your Metatrader Directory …/experts/indicators /
- Copy the “TraderVersity.Com-MACDVolatilityQualitySystem.tpl” file (template) to your Metatrader Directory …/templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your forex system
- Right-click on your trading chart and hover on “Template”
- Move right to select TraderVersity.Com-MACDVolatilityQualitySystem
- You will see “MACD Volatility Quality Forex SCALPING & SWING Trading System” is available on your Chart
The primary method of interpreting the MACD is with Non-Lag Moving Average crossovers.
The shorter-term 10-period Non-Lag Moving Average (Non-Lag MA) crosses above the longer-term 21-period Non-Lag Moving Average a potential BUY signal is generated.
- MACD: The MACD histogram above the MACD Signal Line
- X-ArrZZx2: Green lines
- Volatility Quality – Zweo line GZ: Green line
- Non-Lag MA V7 M: Yellow lines (The shorter-term 10-period Non-Lag Moving Average (Non-Lag MA) crosses above the longer-term 21-period Non-Lag Moving Average)
- MACD: The MACD histogram below the MACD Signal Line
- X-ArrZZx2: Red lines
- Volatility Quality – Zweo line GZ: Red line
- Non-Lag MA V7 M: Blue lines (The shorter-term 10-period Non-Lag Moving Average (Non-Lag MA) crosses below the longer-term 21-period Non-Lag Moving Average)
When it comes to technical analysis, the Moving Average Convergence Divergence oscillator is one of the most useful tools available. Not only because it is relatively easy to use, but also because it is quite effective at identifying both market trends and market momentum.
As most TA indicators, however, the MACD is not always accurate and may provide numerous false and misleading signals – especially in relation to volatile assets or during weak-trending or sideways price action.