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The MACD & 144 EMA Strategy for Long-Term Forex Trends

Last Updated on February 22, 2025 by Arif Chowdhury

Are you tired of chasing the market with little to show for your efforts?

Maybe you’ve been burned by strategies that promised the world but left you high and dry.

If you’re like most traders, you want a method that not only works but also stands the test of time.

Let’s dive into a strategy that has been a game-changer for me: The MACD & 144 EMA Strategy for long-term Forex trends.

Understanding the MACD and 144 EMA

First off, what are these indicators?

  • MACD (Moving Average Convergence Divergence): This is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. It’s useful for identifying potential buy and sell signals.
  • 144 EMA (Exponential Moving Average): This is an average that gives more weight to recent prices. The 144 EMA is popular among traders for its ability to smooth out price action and identify the overall trend.

Combining these two can give you a robust framework for trading.

Why This Strategy Works

The beauty of the MACD & 144 EMA strategy lies in its simplicity and effectiveness.

  1. Trend Identification: The 144 EMA helps to identify the long-term trend. If the price is above the 144 EMA, we’re looking for buy signals. If it’s below, we focus on sell signals.
  2. Momentum Confirmation: The MACD does the heavy lifting, confirming momentum. When the MACD line crosses above the signal line while above the 144 EMA, it’s a green light for buying.
  3. Risk Management: Using these indicators together helps to minimize risk. You’re not just relying on one signal; you have a confirmation mechanism in place.

Statistically speaking, strategies that use multiple indicators often yield better results. In fact, studies show that traders who use a combination of indicators can improve their win rate by up to 30%!

Setting Up the Strategy

Here’s how to implement the MACD & 144 EMA strategy:

  • Chart Setup: Use the H4 chart (4-hour) for a broader perspective on price movement.
  • Indicators: Add the 144 EMA and the MACD to your chart.
  • Entry Rules:
    • Buy Signal: Price is above the 144 EMA, and the MACD line crosses above the signal line.
    • Sell Signal: Price is below the 144 EMA, and the MACD line crosses below the signal line.
  • Stop Loss: Always set a stop loss to manage risk effectively. Consider placing it below the recent swing low for buy trades and above the swing high for sell trades.
  • Take Profit: Aim for 200-350 pips. This range not only aligns with the long-term nature of the strategy but also allows for substantial profits.

My Trading Bots and Their Role

As a seasoned Forex trader since 2015, I’ve developed a portfolio of 16 sophisticated trading bots that utilize the MACD & 144 EMA strategy among others.

These bots are strategically diversified across major currency pairs such as EUR/USD, GBP/USD, USD/CHF, and USD/JPY.

Here’s why this matters:

  • Diversification: Each currency pair has 3-4 bots designed to minimize correlated losses. This increases your chances of profitability while reducing risk.
  • Backtested Performance: My bots have been backtested over 20 years and excel under various market conditions. They’re designed for long-term trading, ensuring you capture those 200-350 pips consistently.
  • Free Access: I’m offering this EA portfolio for FREE. You can start using these bots without any upfront cost. Just check it out here.

Best Practices for Success

To maximize your success with this strategy, keep these tips in mind:

  • Stay Disciplined: Stick to your trading plan and avoid emotional decisions.
  • Keep Learning: The Forex market is always evolving. Continue to educate yourself to adapt to new conditions.
  • Use Reliable Brokers: Partnering with trustworthy brokers is essential. I’ve tested several and recommend checking out the best options here.

Final Thoughts

The MACD & 144 EMA strategy is a powerful tool for anyone serious about long-term Forex trading.

By combining trend identification with momentum confirmation, you set yourself up for success.

And with the added advantage of my trading bots, you can automate these strategies for optimal performance.

Remember, trading is a journey. Equip yourself with the right tools, stay disciplined, and the results will follow.