The MACD Colored indicator for Metatrader 4 transforms price action into a great buy/sell trading tool that works well for both scalpers and day traders.
The indicator oscillates above and below the 0.00 level. Price action above the 0.00 level is bullish while bearish below.
In order to make it more easy for traders, the colored MACD indicator will be green when price action is bullish and red when price action is bearish.
For scalping and day trading purposes, the colored MACD indicator tends to work the best during the London and U.S. trading sessions.
The picture below is an example of how the MACD colored indicator looks like when applied to the GBP/USD 15-minute trading chart.
How to buy and sell currency pairs with the MACD Colored Forex indicator?
The indicator can be used in multiple ways, please find a classic trading example below:
- A buy signal is given when the indicator turns back to green color.
- Place your stop loss 3 pips below short-term support.
- Exit the buy trade for a fixed take profit target or wait for a sell signal.
- A sell signal is given when the indicator turns back to red color.
- Place your stop loss 3 pips above short-term resistance.
- Exit the sell trade for a fixed take profit target or wait for a buy signal.
How to I install and run this Forex indicator on Metatrader 4?
- Download the macd-colored-indicator.ex4 indicator file here and save it to your computer
- Open the Metatrader 4 trading platform
- From the top menu, click on “File” to open the drop down menu
- Select the “open data folder” and navigate to the “MQL4” folder
- Then navigate to the “Indicators” folder
- Copy the indicator into the “Indicators” folder
- Close the trading platform and restart it
- The indicator will be automatically installed on MT4
- You will find the installed indicator in the Navigator window
- In order to start using it, drag and drop the indicator to the chart