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How to Combine MACD + Cumulative Delta Volume for Better Trade Execution?

Last Updated on March 15, 2025 by Arif Chowdhury

Ever felt like you’re missing the mark in your trades?

You’re not alone.

Many traders struggle with timing and execution.

What if I told you there’s a way to enhance your trading strategy using two powerful indicators: MACD and Cumulative Delta Volume?

Let’s break this down together.

Understanding the Basics

MACD (Moving Average Convergence Divergence)

  • It’s a trend-following momentum indicator.
  • It shows the relationship between two moving averages of a security’s price.
  • Helps identify potential buy and sell signals.

Cumulative Delta Volume

  • This measures the difference between buying and selling volume.
  • It indicates market strength and potential reversals.
  • By tracking this, you can gain insights into market sentiment.

Why Combine These Indicators?

  1. Enhanced Accuracy: Using MACD alone can lead to false signals, especially in volatile markets.
  2. Confirmation: Cumulative Delta Volume can confirm what MACD indicates, reducing the chances of a bad trade.
  3. Market Context: The combination gives you a clearer picture of the market dynamics, helping you make informed decisions.

How to Use Them Together

Step 1: Set Up Your Charts

  • Add MACD to your chart (default settings: 12, 26, 9).
  • Overlay Cumulative Delta Volume.

Step 2: Look for Divergences

  • If MACD shows a bullish divergence while Cumulative Delta Volume trends downward, be cautious.
  • Conversely, if both indicators align, it’s a stronger signal.

Step 3: Confirm Signals

  • Wait for MACD to cross above the signal line.
  • Check if Cumulative Delta Volume is increasing at the same time.
  • This combo can lead to better entry points.

The Power of Diversification

Now, let’s talk about diversity in trading.

I’ve crafted a portfolio of 16 trading bots that utilize the MACD + Cumulative Delta Volume strategy among others.

These bots are diversified across four major currency pairs:

  • EUR/USD
  • GBP/USD
  • USD/CHF
  • USD/JPY

Each bot is designed to minimize correlated losses.

This means if one bot faces challenges, others can still perform.

Using H4 charts, these bots aim for long-term trades, typically targeting 200-350 pips.

This approach has been backtested for the last 20 years.

You can check out my FREE EA portfolio here!

Practical Tips for Execution

  • Stay Informed: Always keep up with market news. It can drastically affect volume and trends.
  • Adjust Your Settings: Don’t be afraid to tweak MACD settings based on your trading style.
  • Practice Patience: Wait for confirmation from both indicators before executing a trade.

The Importance of Choosing the Right Broker

Your trading experience can greatly depend on your broker.

Here’s what to look for:

  • Tight Spreads: This means lower costs for your trades.
  • Fast Execution: Delays can ruin a good trade.
  • Customer Support: You want a broker that’s there when you need them.

I’ve tested various brokers and recommend checking out the best forex brokers here.

Final Thoughts

Combining MACD and Cumulative Delta Volume has the potential to enhance your trading strategy significantly.

By using these indicators together, you can improve execution and increase your chances of consistent profitability.

And remember, diversifying your approach with tools like my 16 trading bots can further bolster your success.

Take advantage of this knowledge.

Start experimenting with these strategies today!