The KAMA with MACD Forex scalper is a free MT4 indicator that delivers excellent trading signals for scalpers and day traders.
The indicator pops up in a separate MT4 chart window as a signal oscillator that fluctuates above and below the 0.00 neutral level.
Buy & Sell Trade Example
- Open a buy trade as soon as both signal lines cross back above the 0.00 level (bullish).
- Open a sell trade as soon as both signal lines cross back below the 0.00 level (bearish).
The KAMA with MACD scalper indicator can be used for both trade entry and exit, or as an additional confirmation filter for other strategies and systems.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “kama_macd.mq4” indicator for MT4
Indicator Chart (EUR/USD M5)
The example chart below displays the KAMA with MACD scalper mt4 indicator in action on the trading chart.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method to trade with the KAMA with MACD Forex scalper indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Signal oscillator
Does the indicator repaint? No.
KAMA with MACD + Moving Buy Sell Arrows MT4 Day Trading Strategy
This MT4 day trading strategy combines the KAMA with MACD Forex Scalper Indicator and the Moving Buy Sell Arrows Oscillator to identify precise intraday trading opportunities.
The KAMA with MACD helps determine the overall market trend, while the Moving Buy Sell Arrows Oscillator provides clear entry signals.
This strategy is suitable for M1, M5, and M15 timeframes and is designed for traders who want to capitalize on short-term price movements during active trading hours.
Buy Entry Rules
- Confirm that the KAMA with MACD signal line is above the zero level, indicating a bullish trend.
- Wait for a blue arrow from the Moving Buy Sell Arrows Oscillator, signaling a buy opportunity.
- Enter a buy trade at the close of the candle where the blue arrow appears.
- Place a stop loss below the most recent swing low or 10–15 pips below the entry point.
- Set a take profit target of 15–30 pips for M1, 25–50 pips for M5, or adjust according to market volatility.
Sell Entry Rules
- Confirm that the KAMA with MACD signal line is below the zero level, indicating a bearish trend.
- Wait for a red arrow from the Moving Buy Sell Arrows Oscillator, signaling a sell opportunity.
- Enter a sell trade at the close of the candle where the red arrow appears.
- Place a stop loss above the most recent swing high or 10–15 pips above the entry point.
- Set a take profit target of 15–30 pips for M1, 25–50 pips for M5, or adjust according to market volatility.
Advantages
- Combining trend and signal indicators reduces the chance of false entries.
- Clear buy and sell signals make decision-making simple for active traders.
- Suitable for multiple timeframes, allowing flexibility based on trading style.
- Defined stop loss and take profit levels improve risk management.
- Can be applied to various currency pairs during day trading sessions.
Drawbacks
- Signals can be less reliable during sideways market conditions.
- Scalping requires constant monitoring and fast execution.
- High-frequency trades may increase transaction costs and spread impact.
- Not ideal for traders who prefer long-term positions.
- Sudden news events can trigger stop losses before trend continuation.
Example Case Studies
Case Study 1: EUR/USD M5 Chart
The KAMA with MACD signal line moved above zero, showing a bullish trend.
Shortly after, the Moving Buy Sell Arrows Oscillator displayed a blue arrow.
A buy trade was entered at 1.1050, with a stop loss at 1.1035 and a take profit target of 1.1070.
The trade reached the target within 25 minutes, resulting in a 20-pip gain.
This shows how combining trend and signal indicators can produce quick, profitable trades.
Case Study 2: GBP/USD M1 Chart
The KAMA with MACD signal line fell below zero, indicating a bearish trend.
A red arrow appeared on the Moving Buy Sell Arrows Oscillator, signaling a sell opportunity.
A sell trade was entered at 1.3000, with a stop loss at 1.3015 and a take profit at 1.2980.
The trade hit the take profit within 15 minutes, netting 20 pips.
This illustrates the effectiveness of this strategy on lower timeframes for rapid intraday moves.
Strategy Tips
- Always confirm the trend direction with the KAMA with MACD before entering trades.
- Avoid trading during major news releases to reduce the risk of whipsaw moves.
- Use a demo account to practice the strategy before applying real money.
- Adjust stop loss and take profit levels based on pair volatility and timeframe.
- Consider using a trailing stop once the trade moves favorably to secure profits.
