The MACD Line Forex indicator for Metatrader 4 appears as a single line on the chart and it offers simple to trade buy and sell signals.
Generally speaking, a bullish trend occurs when the green colored line turns back above the 0.00 level while bearish below.
Basically, that’s all you need to know about this indicator.
This indicator can be easily combined with other technical indicators and price action techniques.
The picture below is an example of how the MACD Line Forex indicator looks like when applied to the EUR/USD 1-hour trading chart.
How to buy and sell currency pairs with the MACD Line indicator?
The indicator can be used in multiple ways, please find a classic trading example below:
- Open a buy trade when the green colored MACD line crosses the zero level bottom-up.
- Place your stop loss 2-3 pips below support.
- Exit the buy trade for a risk to reward ratio of at least 1.3 or wait for a sell signal.
- Open a sell trade when the green colored MACD line crosses the zero level top-down.
- Place your stop loss 2-3 pips above technical resistance.
- Exit the sell trade for a risk to reward ratio of at least 1.3 or wait for a sell signal.
How to I install and run this Forex indicator on Metatrader 4?
- Download the macd-trad-indicator.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