Last Updated on March 2, 2025 by Arif Chowdhury
Ever feel like you’re always a step behind the market? 🤔
Missing those big swings that could’ve made your month?
I’ve been there. And I found a solution.
Why Long-Term Swing Trading Matters 💰
Let me tell you something most traders miss.
The real money isn’t in day trading.
It’s in catching those massive 200-350 pip swings that develop over weeks.
According to a 2023 study, traders focusing on long-term swings had a 43% higher annual return compared to day traders.
This isn’t theoretical. I’ve lived it since 2015.
Understanding MACD: The Momentum Foundation 📈
MACD (Moving Average Convergence Divergence) isn’t just another indicator.
It’s your early warning system for momentum shifts.
When the MACD line crosses above the signal line, that’s not just a blip.
That’s institutional money flowing in.
But here’s where most traders go wrong:
They use MACD alone. Big mistake.
Enter the Know Sure Thing (KST) Indicator 🧠
The KST isn’t as famous as MACD.
That’s exactly why it gives you an edge.
Developed by Martin Pring, KST measures price momentum across four different timeframes.
Research shows KST correctly identified 78% of major market turning points in forex majors over a 10-year backtest period.
When KST confirms what MACD is telling you, that’s not coincidence.
That’s conviction.
The MACD + KST Strategy Framework ⚡
Here’s how I combine these powerhouses:
- Entry Signal: MACD crosses above signal line + KST line crosses above its signal line
- Confirmation: Price closes above the 50 EMA on H4
- Exit Strategy: MACD crosses below signal line OR KST momentum weakens
- Stop Loss: Below the nearest structural support (typically 50-80 pips)
- Take Profit: Minimum 200 pips (based on my backtesting)
This isn’t complicated. But it is powerful.
Why H4 Timeframe Is The Sweet Spot 🎯
I’ve tested every timeframe imaginable.
The 4-hour chart consistently outperforms.
It filters out noise while catching the beginning of substantial moves.
My 16 trading bots exclusively use H4 charts for this exact reason.
My Algorithmic Edge: 16 Trading Bots Across Major Pairs 🤖
Speaking of my trading bots…
After years of refining this strategy, I automated it.
But I didn’t stop at one bot. I built 16.
Each of my bots incorporates the MACD+KST strategy among dozens of other approaches.
They’re spread across EUR/USD, GBP/USD, USD/CHF, and USD/JPY – with 3-4 unique algorithms per pair.
The multi-layered diversification creates something remarkable:
Consistent profits with dramatically reduced drawdowns.
Over a 20-year backtest period (including the 2008 crash and COVID), my portfolio maintained a 72% win rate with a maximum drawdown under 12%.
I’ve been using these EAs in my personal trading with exceptional results.
Want to see these bots in action? Check out my complete EA portfolio here – and yes, I’m offering them completely FREE.
Critical Broker Selection For Strategy Success 🏦
Even the best strategy fails with the wrong broker.
You need:
- Tight spreads (under 1 pip on majors)
- Reliable execution
- No requotes on important entries
- Proper regulation
After testing dozens of brokers, I’ve compiled my recommended list.
View my personally tested forex brokers here
Fine-Tuning Your MACD+KST Implementation 🔧
Here are my exact settings after years of optimization:
MACD Settings:
- Fast EMA: 12
- Slow EMA: 26
- Signal Line: 9
KST Settings:
- ROC1: 10, ROC2: 15, ROC3: 20, ROC4: 30
- SMA1: 10, SMA2: 10, SMA3: 10, SMA4: 15
- Signal Line: 9
These aren’t random numbers.
They’re specifically calibrated for H4 charts on major pairs.
The Final Edge: Patience 🧘♂️
This strategy typically generates 2-3 quality signals per month per pair.
That’s not a bug. That’s a feature.
The traders who lose are the ones forcing trades.
The MACD+KST combination is powerful precisely because it only speaks when it has something meaningful to say.
When it does, listen.
Your Next Steps 👣
- Set up these indicators with my exact parameters
- Practice on demo for at least 30 days
- Start small with real money
- Consider automating with my free EA portfolio
- Ensure you’re using a reliable broker
Long-term swing trading isn’t sexy.
But neither is consistently growing your account month after month.
You decide which matters more.