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Discover the best mac-D indicator strategy with a high win rate that uses an improved version of the mac-D indicator. Pair it with other indicators to filter out false signals. Follow the steps on Trading View to optimize the indicators and use the SSL hybrid indicator as a trend filter indicator, the volume indicator to assess the market’s volume, and the MACD indicator as a buy and sell signal provider. Moreover, find out when to enter a buy position and consider using AAAFX as a reliable broker.
The Best MAC-D Indicator Strategy with Extremely High Win Rate
Introduction
MAC-D indicator strategy is one of the most popular trading strategies in the forex trading market because it is straightforward and easy to follow. However, it is crucial to know that the strategy does not always provide accurate signals. This is where the improved version of the MAC-D indicator comes in. In this article, we will be discussing the MAC-D indicator strategy using the improved version, which has a higher success rate.
MAC-D Indicator
The improved version of the MAC-D indicator we will be using in this strategy is the AK mac-D indicator, made by Algokid. To optimize the indicator for the strategy, we will uncheck the bar colors checkbox in the style tab. The basic form of the indicator is a buy and sell signal indicator. When the indicator switches from red to green and the signal occurs above the zero line, it is a buy signal. When the indicator switches from green to red and the signal occurs below the zero line, it is a sell signal.
Potential Entries
To use the indicator, we must first identify the trend. If the dots are above the zero line, it indicates a bullish trend, and if they are below the zero line, it indicates a bearish trend. In a bullish trend, we can enter a buy position when the dots switch from red to green if the dots are still above the zero line. In a bearish trend, we can enter a sell position when the dots switch from green to red if the dots are still below the zero line. We will place the stop loss at the recent swing high or low, depending on the position type, and target a 1.5 times risk-to-reward ratio for the take profit.
Filtering False Signals
Even though the MAC-D indicator is powerful, we can still receive false signals. To combat this, we will add the SSL hybrid indicator, made by Mihkel, and the volume indicator. The SSL indicator will act as a trend filter indicator and help confirm buy or sell entries. We will only enter a buy position if the price is trading above the EMA baseline and a sell position if the price is trading below the EMA baseline. The volume indicator’s MA line will help determine if there is enough volume to push the price up or down. We will assume that there is enough volume in the market when the volume bar is above the MA and not enough volume when the volume bar is below the MA.
Entering into a Buy Position
To enter a buy position, the price must be trading above the EMA, indicating an uptrend. When there is a pullback to the EMA, the candlestick and EMA line will turn grey or red. We will only enter into a buy position if the color changes. To confirm the entry, we will check the volume indicator, and if the volume bar is above the MA, we proceed to the final step. Finally, we will check the improved MAC-D indicator, and if the dots are above the zero line, we enter when the dots switch from red to green. We place the stop loss at the EMA or recent swing low, depending on market volatility, and target a 1.5 times risk-to-reward ratio for the take profit.
Conclusion
The improved MAC-D indicator strategy is a powerful and straightforward strategy that has a higher success rate than the basic strategy. By combining the improved MAC-D indicator with the SSL hybrid indicator and the volume indicator, we can filter out false signals and ensure more significant profits. Remember to always practice risk management by using a stop loss and taking profits based on a risk-reward ratio.
