Buy/Sell Arrow Signal system with MACD confirmation.

Trend confirmation using MACD

This indicator is a Buy/Sell Arrow Signal system with MACD confirmation (trend + momentum combination).

I’ll give you a clear mechanical strategy with:

  • Entry
  • Stop Loss
  • Take Profit
  • 1:2 Risk Reward
  • Risk Management

No confusion. Simple rules.


✅ 1️⃣ Trend Confirmation (Very Important)

Before taking any arrow signal:

🔵 Buy Only If:

  • MACD blue line is above red line
  • Both lines are above 0 level (strong trend)
  • Market structure showing higher highs & higher lows

🔴 Sell Only If:

  • MACD blue line below red line
  • Both lines below 0 level
  • Lower highs & lower lows forming

Avoid taking signals against MACD direction.


✅ 2️⃣ Entry Rules

🔵 BUY Entry

Enter when:

  • Green arrow appears
  • MACD confirms bullish crossover
  • Candle closes bullish

👉 Entry at next candle open.


🔴 SELL Entry

Enter when:

  • Red arrow appears
  • MACD confirms bearish crossover
  • Candle closes bearish

👉 Entry at next candle open.


✅ 3️⃣ Stop Loss Placement

Never use random SL.

For BUY:

  • Stop Loss below recent swing low
    OR
  • 5–10 pips below arrow candle low (M15 timeframe)

For SELL:

  • Stop Loss above recent swing high
    OR
  • 5–10 pips above arrow candle high

Structure-based SL is safest.


✅ 4️⃣ Take Profit (1:2 Risk Reward Strategy)

Always maintain minimum 1:2 RR.

Example:

If SL = 20 pips
TP = 40 pips

Formula:

Risk = Entry – SL

For BUY:
TP = Entry + (Risk × 2)

For SELL:
TP = Entry – (Risk × 2)


✅ 5️⃣ Trailing Stop Option (Advanced)

When price moves 1R (same as SL distance):

  • Move SL to breakeven
  • Trail below recent swing low (for buy)
  • Trail above swing high (for sell)

This increases profitability in strong trends.


✅ 6️⃣ Risk Management (Very Important)

Never risk more than:

  • 1% per trade (recommended)
  • 2% maximum

Lot Size Formula:

Lot Size = (Account Balance × Risk %) ÷ Stop Loss (pips value)

Example:

$1000 account
1% risk = $10
SL = 20 pips

Position size = Risk ÷ SL


✅ 7️⃣ Best Conditions for This Indicator

Works best:

  • M15 timeframe
  • London session
  • New York session
  • Trending pairs (GBPJPY, XAUUSD, NAS100, USDJPY)

Avoid:

  • Sideways market
  • Before high impact news
  • When MACD flat around zero

✅ 8️⃣ Win Rate Improvement Trick

Only take:

  • Arrow + MACD crossover
  • Arrow in direction of overall trend
  • Arrow after pullback

Skip early arrows in ranging zones.


🔥 Example on Your Chart (USDJPY M15)

Green arrow → MACD bullish →
Entry: 153.200
SL: 153.050 (15 pips risk)
TP: 153.500 (30 pips target = 1:2 RR)

Simple. Controlled. Professional.

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