The MACD With Crossing Line indicator for Metatrader 4 provides trade entries in existing market trends.
The indicator is composed of gray colored histogram bars and a yellow/red colored crossover trading system.
The gray colored bars reveal the main trend while the colored signal lines deliver the actual trend entry price.
The indicator should work equally well across all time frames and currency pairs.
How to interpret this indicator?
The trend is considered bullish when the gray colored bars are positioned above the 0.00 level.
The trend is considered bearish when the gray colored bars are positioned below the 0.00 level.
The picture below is an example of how the MACD With Crossing Line Forex indicator looks like when applied to the EUR/USD 5-minute trading chart.
How to buy and sell currency pairs with the MACD With Crossing Line Forex indicator?
The indicator can be used in multiple ways, please find a classic trading example below:
- A buy signal is given when the gray MACD bars are positioned above the zero level and the yellow line crosses above the red line.
- Place your stop loss below short-term support.
- Exit the buy trade for a risk to reward ratio of at least 1.2 or wait for a sell signal.
- A sell signal is given when the gray MACD bars are positioned below the zero level and the yellow line crosses below the red line.
- Place your stop loss above short-term resistance.
- Exit the sell trade for a risk to reward ratio of at least 1.2 or wait for a buy signal.
How to I install and run this Forex indicator on Metatrader 4?
- Download the macd-with-crossing-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