The MACD Histogram With Filter Signal indicator for Metatrader 4 is an improved MACD indicator that works with a digital filter.
The indicator appears in a bottom chart as colored histogram bars and signal lines.
Generally speaking, the trend is positive when the histogram bars are positioned above the zero level while negative below.
The indicator does not repaint any of the colored histogram bars and can be used by both beginners and seasoned currency traders.
The picture below is an example of how the MACD Histogram With Filter Signal indicator looks like when applied to the EUR/USD 1-hour trading chart.
How to buy and sell currency pairs with the MACD Histogram With Filter Signal indicator?
The indicator can be used in multiple ways, please find a classic trading example below:
- Open a buy transaction when the MACD histogram bars crosses the 0.00 level bottom-up.
- Place your stop loss 1-2 pips below previous swing low.
- Exit the buy trade for a fixed take profit target or wait for a sell signal.
- Open a sell transaction when the MACD histogram bars crosses the 0.00 level top-down.
- Place your stop loss 1-2 pips above previous swing high.
- 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-histogramm-with-filter-ma.mq4 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