The MACD Signal Bars Forex indicator for Metatrader 4 is a simplified MACD buy/sell tool that works great for beginners.
The actual signals will be transformed into easy to read buy/sell histogram bars.
A green bar is a bullish signal while a red bar a bearish signal.
The indicator is lightweight and does not repaint the signal bars.
For scalping, the MACD Signal Bars indicator tends to work the best during the London and U.S. trading sessions.
The picture below is an example of how the MACD Signal Bars indicator looks like when applied to the GBP/USD 1-minute trading chart.
How to buy and sell currency pairs with the MACD Signal Bars indicator?
The indicator can be used in multiple ways, please find a classic trading example below:
- Open a buy trade as soon as the first green MACD signal bar appears in the bottom chart.
- Place your stop loss 3 pips below support.
- Exit the buy trade for a fixed take profit target or wait for a sell signal.
- Open a sell trade as soon as the first red MACD signal bar appears in the bottom chart.
- Place your stop loss 3 pips above 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-bars-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