The MACD Tape Signal Forex indicator for Metatrader 4 is based on the MACD trading method and it delivers solid buy and sell signals.
The indicator appears in a separate chart window as some sort of colored trading channel that oscillates above and below the 0.00 level.
In addition, buy and sell signal arrows appear in the main chart window.
The MACD Tape Signal works the best for scalpers and day traders during the most volatile trading hours.
How to interpret this indicator?
The trend is considered bullish when the trading channel crosses the zero level bottom-up.
The trend is considered bearish when the trading channel crosses the zero level top-down.
The picture below is an example of how the MACD Tape Signal trading indicator looks like when applied to the EUR/USD 1-hour trading chart.
How to buy and sell currency pairs with the MACD Tape Signal Forex indicator?
The indicator can be used in multiple ways, please find a classic trading example below:
- Open a buy trade when the first blue arrow gets printed on the chart and the trading channel is positioned above the zero level.
- Place your stop loss 2-3 pips below technical support.
- Exit the buy trade for a risk to reward ratio of at least 1.5 or wait for the first yellow arrow.
- Open a sell trade when the first yellow arrow gets printed on the chart and the trading channel is positioned below the zero level.
- Place your stop loss 2-3 pips above technical resistance.
- Exit the sell trade for a risk to reward ratio of at least 1.5 or wait for the first blue arrow.
How to I install and run this Forex indicator on Metatrader 4?
- Download the macd-tape-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