EMA to SMA MACD Indicator
MT5Also Available for MT4Forex BUY and SELL signals from the best MT5 EMA to SMA MACD Indicator. Combine MACD with EMA and SMA. Accurate trend detector.
Description
The EMA to SMA MACD indicator combines two of the best moving average indicators to represent trend direction. Like traditional MACD and EMA, it draws a signal line and a histogram.
There are two moving averages – EMA, SMA and MACD signal line. MACD draws a signal line by subtracting two MAs. The signal line gives a BUY or SELL signal.
The MACD histogram shows trading divergences. The histogram draws bars that reflect the overall situation in the market. For example, the histogram draws an upper band when there is bullish momentum. Conversely, with a bearish momentum, the histogram is depicted as a lower band.
When looking for forex BUY/SELL signals, traders should use the indicator on longer timeframes. This is due to the fact that the indicator gives fewer false signals on large timeframes.
EMA to SMA MACD BUY/SELL signals
The EUR/USD hourly chart above shows the indicator’s BUY and SELL signals.
As with the traditional MACD, we should look at the histogram and the signal line for BUY and SELL signals. The histogram of this indicator acts as a continuation and reversal of a trend.
When the histogram shows bars above zero, it indicates an uptrend that is about to reverse. Here, traders should exit long positions and open short ones.
Conversely, when the histogram draws thin bars below zero, it signals a downtrend and an uptrend will soon begin. Thus, forex traders should exit short positions and go long.
The signal line of this indicator also offers BUY and SELL signals. When the bars rise above the signal line, it indicates an uptrend. On the other hand, when the bars go below the signal line, it indicates a downtrend.
Does MACD use EMA or SMA?
The EMA to SMA MACD indicator uses both MAs at once as a signal line.
Are EMA and MACD the same?
No, the EMA plots a single line on the chart, while the MACD plots the EMA along with the histogram on the chart.
Conclusion
The EMA to SMA MACD indicator is a must for any forex trader. It combines two of the most powerful technical indicators to generate BUY and SELL signals. In addition, the indicator is free to download, making it available to all forex traders.
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