Dsl MACD Indicator For MT4
Table Of Contents:
- Dsl MACD Indicator For MT4
- Trading ideas with the Dsl MACD Indicator For MT4
- Dsl MACD Indicator For MT4 - Buy Entries
- Dsl MACD Indicator For MT4 - Sell Entries
- Dsl MACD Indicator For MT4 - Conclusion
The Dsl MACD Indicator For MT4 is more like and a signal generator which tells the potential strength of the market trend. If the signal curve stays in ash color, you can expect a continuation or sideways pattern. On the contrary, the green color signal curve indicates strong buying momentum. Bearish momentum is indicated by the orange color curve.
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
The Dsl MACD Indicator For MT4 is a very efficient tool to analyze the trend of an asset. The use of the traditional MACD indicator is a bit tough but the Dsl – MACD is very easy to use as the signals are represented by color-changing lines. Moreover, the traders can filter the trade setups in the lower time frame also.
Though it might sound very complex at the initial stage if you start systematically using this tool, you can easily improve the efficiency of the system. But the syncing this tool with a system that doesn’t pass the minimum benchmark in the investment industry is going to be fatal. The system which you will be using must have a win rate of over 60% or else you need to revise the trading strategy before you use the indicator. Once you learn to use the indicator strategically, you will be able to boost your trading skills.
During the development phase, you need to focus on two important things. First of all, look for potential signals in favor of the trend. Secondly, try to use the price action trading method. If these two things are considered at trading, you may expect to win most of the trades by using the Dsl – MACD as an active filter tool.
Trading ideas with the Dsl MACD Indicator For MT4
The retail traders easily get confused when they use a new indicator. An indicator is a very powerful tool and it helps the traders a lot to become successful at trading. But to get better at trading, you need to be an experienced user of the indicator or on the tools that have an easy data reading process.
Since the Dsl MACD shows the direction of the trend with the color-changing signal line, it is easy to filter the good and bad trades. Though the indicator is designed to trade in any time frame, we recommended the user to rely on the higher time frame for the first few months. As you get comfortable by using the indicator in the higher time frame, you should start following some strategic steps and slowly move to the lower time frame.
But it’s not a rule, since many retail traders love the concept of position trading method. Scalp the market only if you know about the price action trading method and advanced risk management technique. Now let’s see the real use of the Dsl MACD indicator to take the long and short trade.
Dsl MACD Indicator For MT4 - Buy Entries
Few simple techniques help retail investors to find the potential buying signal. In most cases, the retail traders fail to analyze the important buying signal as they get biased with the indicators. But the users of the Dsl MACD Indicator use their edge to find the trade setup first.
You can determine the potential buying zone by using the trend line, horizontal support level, or the major chart pattern. If you manage to draw the trend line in the correct order, you should see a strong bounce at the support zone. The bounce in the price should create the bullish reading in the Dsl MACD Indicator. Color in the signal line will turn from grey to green.
The slope should be positive. In simple terms, you should see a green color signal line rising in the indicator panel. Determine the risk to the reward ratio and see if it is better than 1:3. Never try to trade with a 1:2 risk to reward ratio as it complicates the process of trading. Stick to a higher risk to reward ratio while using the Dsl MACD Indicator.
Dsl MACD Indicator For MT4 - Sell Entries
Successful traders are very good at analyzing the key market data. For their short trade, the retail traders should look for the potential sell signals at the major resistance level. Instead of using the simple strategic steps, we will teach you the advanced method. Look for the bearish price action signals.
Those who don’t have any idea about the bearish trade setup should look for the doji pattern. Once you have determined the bearish PA pattern at the major resistance, analyze data from the Dsl MACD Indicator. The indicator should show a falling signal line colored in orange color.
Evaluate the slope of the signal line. The slope must be negative or in simple terms, the orange color line should be heading to the south direction. Find the take profit and stop-loss zone and determine the RR ratio. Since the price action trading method is used in this system, you can trade with a 1:2 risk to reward ratio. But in general, price action traders tend to focus on a 1:4+ risk to reward ratio while taking the reading from the Dsl MACD Indicator.
Dsl MACD Indicator For MT4 - Conclusion
Being a new user of the Dsl MACD Indicator, it is very normal that you will get confused at trading. Some of the retail traders often think they know a lot about the market. Such false pride becomes a very big problem for the retail traders while they start relying on the Dsl MACD Indicator.
They fail to get positive confirmation from the indicator even though they find trade setups by using their trading edge. This is a clear indication that the system that they are using is no longer profitable. Try not to trade with pride and keep on learning new things about the market. The new users of the Dsl MACD Indicator might get confused by seeing a sudden change in the signal line slope. This usually happens during major economic events. But smart traders always keep themselves tuned with the latest market news so that they can reduce the risk right before such events.
However, you can still trade such volatile markets but for that, knowledge of chart pattern trading is a must. With the help of the major chart pattern, the retail traders can easily participate in the trend reversal trading method. But in this case, you need to take the confirmation from the Dsl MACD Indicator in the H1 or higher time frame. Stop trying to trade the key reversal in the minute time frame as the success rate is very low.
