4x Hour MACD FOREX Strategy: ZERO LINE pattern

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В 84th issue of the magazine ForTrader.ru we're gonna look at the fifth pattern of the system by MACD at H4 - ZERO LINE. In 2008, in issue 20, we named it with the letter "I". In the modern version of the Counselor, the specific numbers have been slightly changed, but in general, the essence of it remains the same. profit on the continuation of the trend.This goal is accomplished by tracking behavior histograms MACDIt is to state the moment when the movement will turn, but without crossing the zero line, it will return to the main movement.

Used indicators

For work we continue to use the indicator MACD (5, 13), as well as movingaverage: three exponential moving averages with periods 7, 21, 365 and simple moving average with a period of 98.

Trading strategy algorithm

For the study we will still use the 4-hour chart of the currency pair EURUSD, timeframe H4.

Sell signal

For successful formation of the Zeroline pattern on sale MACD histogram should fall below the level of -0.003, then rise to zero, but not cross it, then turn around and fall below -0.001. The formed pattern is a signal to enter the market on sale. Let's consider an example of a trade:

Figure 3. An example of a modern sell signal.

Buy signal

For successful formation of Zeroline pattern for sale MACD histogram should rise above the level of 0.003, then fall to zero, but not cross it, then turn around and grow above 0.001. The formed pattern is a signal to enter the market to buy. Let's consider an example of a deal:

Testing a trading strategy

The rules are clear and intuitively seem reasonable, so there is interest in the study. Having tested this pattern with default parameters on a deposit in 1000$, we got the following results:

Fig. 6. Report from the tester of the Expert Advisor with default parameters. Period from 2008-01-01 to the present.

As we can see, the result is quite workable, even taking into account significant failures in profitability. Let's try to improve the statistics by optimizing the main parameters.

Fig. 7. Results of pattern optimization in the period 2008.01.01 to 2012.01.01 Initial deposit 3000. Initial lot 0.1.

At advisor optimization all working parameters were involved: buy and sell levels, stop loss and take profit values, as well as MACD values. We consider it inexpedient to describe them completely due to the large number of them, but you will always be able to see them in our Lab. As a result, the most interesting results were the following.

Figure 8. Results of the pattern at the site 2008.01.01 to present.

View report.

Of course, the testing period is quite long - 6 years, but the result is more than impressive, and in combination with other patterns - especially. Therefore, we conclude that the Expert Advisor is workable and can potentially be used for real trading.

For the convenience of reviewing the set and the Expert Advisor, here is a description of parameters by pattern ZERO LINE:

buy_ur_signal1 - upper level to determine an upward trend.
buy_ur_signal2 - lower level, at crossing of which the input signal is generated.
buy_ur_signal_cancel - level to cancel the signal search by the trend defined by the upper level.
sell_ur_signal1- lower level to determine the downtrend.
sell_ur_signal2- upper level, at crossing of which the input signal is generated.
sell_ur_signal_cancel - level to cancel the signal search by the trend defined by the lower level.

Download Advisor and view reports
Results of previous patterns

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