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Trading Strategy MACD & MFI & EMA Gold is a system designed to trade XAUUSD financial active in the Forex market. It is recommended to use it on the H1 timeframe. The strategy is implemented using three indicators: standard indicators MACD and MA, as well as the Market Facilitation Index indicator.
Gold trading in the Forex market is usually different from trading in currency pairs. Gold, due to the high requirements for deposits and collateral, is less attractive to small players than currency pairs. In operations with gold, central banks, commercial banks, industrial groups, and other major players are actively involved. Most transactions made on this financial asset are large volumes. This means that most ticks for gold have significance. Based on this information, we can conclude that tick volumes for gold have much greater similarity with real trading volumes than the same tick and real volumes in currency pairs.
The Market Facilitation Index indicator visualizes tick volumes of a trading asset, which serve as signals for opening or closing deals in this strategy. MACD and Moving Average serve as signal filters here.
Indicator settings
The main indicator in this system is MFI. It has no parameters and does not require special settings. Just apply it to the XAUUSD financial active window on the H1 timeframe. The indicator is displayed as a colored histogram in a separate window at the bottom.
The Moving Average indicator must be made exponential. To do this, in the parameters of this indicator, change MA_method from Simple to Exponential.
Set the MACD indicator with the default settings: 12, 26, 9.
Conditions for opening long positions
The deal opens on a new candle after these conditions are met.
Conditions for opening short positions
The same conditions apply to SELL deals, but with opposite values.
Stoploss and TakeProfit
In this strategy, stop loss is recommended to be set at a distance of 1,500 points from the transaction opening price. Take Profit is three times more than Stop Loss and is equal to 4500 points.
Conclusion
Since the XAUUSD financial asset is a highly volatile tool, adhere to strict risk control rules when working with this asset. Choose volumes for transactions corresponding to your deposit.
