Last Updated on March 8, 2025 by Arif Chowdhury

Ever wonder how the big players in Forex market make their moves?

As a seasoned Forex trader since 2015, I’ve been there, and I get it.

You want to catch those institutional trades, but the market’s a maze.

Let’s dive into a strategy that can help you spot those moves: the MACD + Balance of Power (BOP) strategy.

What Is the MACD?

The Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator.

It shows the relationship between two moving averages of a security’s price.

Here’s how it works:

• MACD Line: The difference between the 12-day and 26-day exponential moving averages (EMAs).
• Signal Line: The 9-day EMA of the MACD line.
• Histogram: The difference between the MACD line and the signal line.

When the MACD line crosses above the signal line, it’s a bullish signal.

When it crosses below, it’s bearish.

This is the bread and butter for many traders.

What Is the Balance of Power (BOP)?

The Balance of Power is an indicator that measures the strength of buyers vs. sellers in the market.

It’s like a tug-of-war—who’s winning?

• Positive BOP: Buyers are in control.
• Negative BOP: Sellers are dominating.

Understanding this dynamic can help you gauge market sentiment.

Why Combine MACD and BOP?

Combining these two indicators gives you a powerful edge.

Here’s why:

• Confirmation: Use MACD for entry signals and BOP to confirm the strength of that signal.
• Risk Management: When both indicators align, your chances of success increase.
• Timing: Helps you enter trades at the right moment.

How to Use the MACD + BOP Strategy

Let’s break it down into actionable steps:

1. Identify the Trend: Use the MACD to determine if the market is trending up or down.
2. Check BOP: Look at the BOP to see who’s in control—buyers or sellers.
3. Enter the Trade:
   • If MACD is bullish and BOP is positive, go long.
   • If MACD is bearish and BOP is negative, go short.
4. Set Your Stop Loss: Always protect your capital.
5. Take Profit: Aim for at least 200-350 pips, which aligns with my trading bots’ strategy.

This method isn’t just theoretical.

Statistically, combining indicators can enhance your win rate by up to 20%.

My Journey and Trading Bots

Over the years, I’ve developed a robust trading portfolio.

It comprises 16 sophisticated trading bots that utilize the MACD + BOP strategy among other techniques.

Each bot is internally diversified across four major currency pairs: EUR/USD, GBP/USD, USD/CHF, and USD/JPY.

Here’s what makes my portfolio stand out:

• Diversity: Each currency pair has 3-4 bots tailored to minimize correlated losses.
• Long-Term Focus: Designed for trades yielding 200-350 pips, these bots excel in the long run.
• Backtested: My bots have been backtested for 20 years under various market conditions, proving their resilience.

And here’s the kicker—I’m offering this entire EA portfolio completely FREE.

Want to elevate your trading game? Check out my 16 trading bots portfolio.

Finding the Best Forex Brokers

Trading is only as good as your broker.

A solid broker can make all the difference.

You want:

• Tight Spreads: More money in your pocket.
• Fast Execution: No missed opportunities.
• Great Support: Helps when you need it.

I’ve tested various brokers and can confidently recommend some of the best.

Check out my favorites at Most Trusted Forex Brokers.

Final Thoughts

The MACD + Balance of Power strategy is a fantastic way to track institutional trades.

Combine that with a solid trading plan and the right tools, and you’re setting yourself up for success.

Remember, the market is always changing.

Stay informed, adapt, and keep refining your strategy.

With my FREE EA portfolio and the right broker, you’ll be well on your way to consistent profitability.