MACD Double Indicator
MT4MACD Double Indicator For MT4 provides two modes of forex trading signals and filters signals using higher time frame trends.
Description
The MACD double indicator for MT4 is the classic MACD- Moving average convergence divergence indicator with a higher time frame filter. In fact the difference lies only in the filter. However, the higher time frame filter provides buy and sell signals for forex traders using a MTF – multi timeframe trading strategy using the MACD. Additionally, the indicator visually changes the color of the candle based on the buy and sell signals. Moreover, forex traders can chose between two different trading signal modes. As a result, the indicator caters for all types of MACD traders with the possibility of integrating the signals to automated trading systems.
The indicator is easy to use for any technical trader with previous experience with the MACD indicator. So, it suits most new and advanced forex traders. Furthermore, the indicator works well in all intraday time frames and higher chart periods and makes it suitable for short and long tern forex traders. Additionally, the indicator is available as free download from the website and is easy to install.
MACD Double Indicator For MT4 Trading Signals
The above AUDUSD M30 candlestick price chart shows the MACD double indicator for MT4 in action. The indicator shows the bullish candlesticks in white and bearish ones as red.
As the indicator provides two different trading methods forex traders should choose between them. If they would like to use the MACD crossing the signal line or the MACD crosses the 0 line. In both cases traders should place a buy trade if the candle color changes from red to white. The change in color indicates the shift in market trend from bearish to bullish. A stop loss below the previous swing low and booking profits at opposite candle color is an effective trading strategy.
Likewise, if the candlestick color changes from white to red it shows a bearish trend will follow. So, forex traders should enter the market with a sell trade and place a stop above the previous swing high and secure the position.
The indicator also provides an option to use a higher time frame as filter if necessary. If a higher time frame is chosen as a filter, the indicator provides trading signals only if it matches the higher time frame trend direction. Though this provides lower number of trading signals, it helps technical traders to stay in the direction of higher time frame trend.
Conclusion
The MACD double indicator for MT4 is very effective and handy for classic MACD traders. Since the indicator uses the confirmation of the trading signals using the higher time frames, it helps to stay in the trend direction.
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