BB MACD Indicator
The BB MACD Indicator for MT5 provides Forex Buy and Sell trading signals based on the MACD Bollinger band volatility.
Description
The BB MACD indicator for MT5 is a combination of the classic MACD and Bollinger Bands. The indicator plots Bollinger Bands on MACD and issues trading alerts based on MACD volatility. However, since the band is small, it is efficient to take a trade when the bands are broken up or down.
The indicator is similar to trading with the classic Bollinger Bands, so beginner Forex traders should familiarize themselves with them in advance.
However, advanced traders will be interested in placing trades based on MACD volatility. The indicator works well on all chart timeframes and does not redraw.
BB MACD Indicator For MT5 Trading Signals
The indicator plots the MACD line and draws Bollinger Bands around the MACD line. The blue color of the MACD line indicates an uptrend, while the red color of the MACD line indicates a downtrend.
Since the indicator is a Bollinger Band, traders can apply multiple trading strategies. Traders can enter the market with a BUY trade if the MACD signal line turns blue. Similarly, if the MACD line turns red, a sell position is justified.
However, because the ranges are narrow, it often transmits signals. Thus, traders can use an alternative strategy and BUY when the MACD line crosses the upper band, signaling an uptrend. On the contrary, traders can open a sell position in the opposite direction.
Conclusion
Thus, the BB MACD indicator for MT5 offers a different perspective on trading. It trades based on MACD volatility, not price.