The TSI MACD Metatrader 4 forex indicator is a combination of the TSI (True Strength Index) and MACD (Moving Average Convergence Divergence) technical indicators.
The TSI MACD indicator is a momentum indicator, considering that it comes from two momentum indicators.
Ultimately, the TSI MACD indicator is used to gauge the strength of a trend, as well as its accompanying momentum.
The indicator is shown to oscillate between -110 and +110, while its signal baseline is on the zero level (a level that determines the market bias).
Incorporating this indicator into your forex trading strategy can be done easily and has enormous profit potential.
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Indicator Chart (EUR/USD H1)
The EUR/USD H1 chart below displays the TSI MACD Metatrader 4 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the blue line of the TSI MACD Metatrader 4 forex indicator breaks above the zero baseline.
Sell Signal: Go short when the blue line of the TSI MACD Metatrader 4 forex indicator breaks below the zero baseline.
Exit buy trade: Close all buy orders while a bullish trend is running, if the red line of the TSI MACD indicator breaks below the zero baseline.
Exit sell trade: Close all sell orders while a bearish trend is ongoing, the red line of the TSI MACD indicator surges above the zero baseline.
Tips: One amazing feature of the TSI MACD indicator is that, unlike other technical indicators, it can be deployed as a tool that determines trend direction and its accompanying strength.
TSI-MACD + Afirma Trend Forex Strategy for MT4
This strategy blends the momentum strength of the TSI MACD MT4 Forex Indicator with the trend filter from the Afirma Forex Trend Indicator MT4.
The TSI MACD gives entries when its blue line crosses the zero baseline, a simple and effective momentum signal.
The Afirma Trend Indicator tracks the broader trend: the blue line means a bullish trend, the red line means a bearish trend.
By combining them, you only take momentum entries that align with the overall trend direction.
This reduces noise and improves the chances for clean entries.
The method works best on M5 and M15 charts and is suited for traders looking for medium-term trades within the day.
Buy Entry Rules
- The Afirma Trend line must be blue, indicating a bullish trend.
- The blue line of the TSI MACD must cross upward over the zero baseline (from negative/near-zero into positive territory).
- Enter long at the open of the next candle after the cross.
- Place a stop loss a few pips below the recent swing low or below a recent support area.
- Set take profit at a 1:2 risk-to-reward ratio, or exit when the Afirma Trend line turns red or when the TSI MACD blue line crosses back below zero.
Sell Entry Rules
- The Afirma Trend line must be red, indicating a bearish trend.
- The blue line of the TSI MACD must cross downward below the zero baseline (from positive/near-zero into negative territory).
- Enter short at the open of the next candle after the cross.
- Place a stop loss a few pips above the recent swing high or above a recent resistance area.
- Set take profit at a 1:2 risk-to-reward ratio, or exit when the Afirma Trend line turns blue, or the TSI MACD blue line crosses back above zero.
Advantages
- Combines trend filter with momentum entries to improve trade quality.
- Simple, objective entry and exit rules which are easy to follow and test.
- Suitable for multiple currency pairs on M5 and M15 charts.
- Risk-to-reward ratio makes risk control manageable.
- Works well in trending markets and during active trading sessions.
Drawbacks
- Late entries are possible if the zero-line cross happens after a strong move already started.
- Stop loss may be hit during sudden reversals or spikes, especially on lower-liquidity pairs.
- Small-to-medium pip targets require consistent accuracy to be profitable over time.
Case Study 1
On GBPUSD M15 during London–New York overlap, Afirma Trend line was blue.
The blue line of the TSI MACD crossed above zero.
The trader entered long at the next candle. Stop loss was placed 12 pips below the recent swing low.
Price rallied over the next 45 minutes, and the trade reached a 24-pip take profit (1:2 risk-reward).
The Afirma Trend stayed bullish, and TSI MACD remained positive throughout the move.
Case Study 2
On USDJPY M5 during the Asian session, the Afirma Trend line turned red.
Shortly after, the blue TSI MACD line crossed below zero.
The trader entered short at the next candle, with a stop loss 10 pips above the recent swing high.
The pair dropped quickly, and after 25 minutes the trade hit a 20-pip profit target (1:2 risk-reward).
The Afirma Trend stayed bearish, and TSI MACD remained negative until exit.
Strategy Tips
- Use this strategy on liquid pairs like EURUSD, GBPUSD, USDJPY, and GBPJPY to minimise spread and slippage.
- Prefer trading during active sessions when volatility is higher to get better momentum signals.
- If the trend line changes before the take profit, consider tightening the stop loss or exiting early to protect gains.
- Backtest the strategy on several pairs and timeframes to find which suits your trading style best.
Download Now
Download the “tsi-macd.ex4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customisation options: Variable (Fast, Slow, Signal, First_R, Second_S, SignalPeriod, Mode_Smooth), width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend | momentum
