MACD Candle Indicator for Mt4 Indicator For MT4
Table Of Contents:
- MACD Candle Indicator for Mt4 Indicator For MT4
- Trading ideas with the MACD Candle Indicator for Mt4 Indicator For MT4
- Interpreting the MACD Candle Indicator for Mt4 Indicator For MT4
- MACD Candle Indicator for Mt4 Indicator For MT4 - Buy Entries
- MACD Candle Indicator for Mt4 Indicator For MT4 - Sell Entries
- MACD Candle Indicator for Mt4 Indicator For MT4 - Conclusion
The MACD Candle Indicator for Mt4 Indicator For MT4 is a very innovative indicator which integrates the parameters of the classic Moving Average Convergence/Divergence indicator right into the price action on the chart. This is liberating for traders in many ways, with one major positive being that you are able to analyse price action in direct relation to the price action without having to look away, up and down your screen. The indicator has a colour scheme which clearly signals the market sentiment to the trader using colours blue and red; red being a bearish market and an array of blue bars means a bullish market- however you may add a Relative Strength Index indicator to the bottom of your screen to profit from divergence trading which will allow you to extinguish the lagging elements out of the main indicator.
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
Trading ideas with the MACD Candle Indicator for Mt4 Indicator For MT4
The MACD Candle Indicator for Mt4 Indicator For MT4 tries to simplify the Moving Average Convergence/Divergence (MACD) indicator, which most traders especially beginners find difficult to interpret. Instead of a histogram as is the case with the standard MACD indicator, the MACD Candle Indicator for Mt4 Indicator For MT4 changes the colours of the candlesticks using the values of the MACD indicator.
At times if you are using a customized template, the indicator may refuse to display the candlestick colours. If that is the case, right-click on the chart and click on properties and reset. You can then choose to unclick the grid as we have done with our screenshots. The indicator should now work as it is supposed to.
You can also customize the indicator for other colours other than blue and red depending on the background that you have chosen to use.
Interpreting the MACD Candle Indicator for Mt4 Indicator For MT4
The candlesticks colour changes depending on whether the MACD value is below or above the zero levels.
The standard MACD indicator normally has a histogram and an oscillating line that oscillates about the zero lines on an indicator chart below the main chart. The MACD Candle Indicator for Mt4 Indicator For MT4 uses the same principle though it does not display the histogram or oscillating line; all that takes place in the background.
When the MACD value goes above the zero level, the colour of the candlesticks changes to blue and when the MACD value goes below the zero level, the colour of the candlesticks changes to red. If you look at the screenshot below, you will realize that the blue candlesticks correspond to when the coloured histogram of the MACD indicator is above the zero line and the red candlesticks correspond to when the coloured histogram of the MACD is below the zero line.
Therefore, it is important to keep in mind that while using the MACD Candle Indicator for Mt4 Indicator For MT4, the colour of the candlesticks on the trading chart does not necessarily represent bullish and bearish candlesticks. Candlesticks can be bullish and be red or blue or vice versa. It all depends on which side of the zero levels the MACD value is.
With that said, it is visible that the interpretation of the MACD Candle Indicator for Mt4 Indicator For MT4 is similar to that of the standard MACD indicator.
In the standard MACD, the histogram represents the difference between the faster and slower moving average lines of the difference between two moving averages of the market prices. As the moving averages get closer to each other, the MACD histogram gets smaller or in other words, it converges. On the other hand, as the moving averages get far and far apart, the MACD histogram gets larger or in other words diverges.
Besides the moving averages getting closer or farther from each other, there are times when they cross each other casing the MACD histogram to shift from below the zero line to above it or vice versa depending on which moving average goes below the other.
When the fast-moving average crosses under the slow-moving average the MACD histogram moves below the zero line. On the other hand, when the fast-moving average crosses above the slow moving average, the MACD histogram gets above the zero line.
When the histogram gets below the zero line, it is an indication that there is a bearish trend. And when the histogram gets above the zero line it is an indication that there is a bullish trend.
Therefore, when the MACD Candle Indicator for Mt4 Indicator For MT4 causes the candlesticks to turn blue (which is because the MACD value has gone above the zero line), it is an indication that there is a bullish trend. When it causes the candlesticks to turn red (which is because the MACD value has gone below the zero line), it is an indication that there is a bearish trend.
MACD Candle Indicator for Mt4 Indicator For MT4 - Buy Entries
To place a Buy order, you should wait for the MACD Candle Indicator for Mt4 Indicator For MT4 to make the candlesticks turn blue. However, you should wait for the first candlestick that has turned blue to finish forming and open your order on the second candlestick.
Depending on your trading strategy, you could choose to use take profit and stop loss levels or simply wait for eh candlesticks colour to change to red to close the order.
MACD Candle Indicator for Mt4 Indicator For MT4 - Sell Entries
To place a sell order, you should wait for the MACD Candle Indicator for Mt4 Indicator For MT4 to make the candlesticks turn red. However, you should wait for the first candlestick that has turned red to finish forming and open your order on the second candlestick.
Depending on your trading strategy, you could choose to use take profit and stop loss levels or simply wait for eh candlesticks colour to change to blue to close the order.
In the above screenshot, we have shown how the coloured histogram compares to the MACD Candle Indicator for Mt4 Indicator For MT4. And it is visible that the two works in a similar manner.
At times just like any other trading strategy, placing and closing solely using the MACD Candle Indicator for Mt4 Indicator For MT4 could result in minor losses once in a while. It is important to use take profits and stop losses.
MACD Candle Indicator for Mt4 Indicator For MT4 - Conclusion
The MACD Candle Indicator for Mt4 Indicator For MT4 makes using MACD very simple. Just by looking for the colour change, a trader can identify the type of trend in the market and then place the appropriate trade.
It is a great choice for beginners since it may be hard for them to interpret the standard MACD indicator histogram and use it to place and close orders.It gives beginners a chance of using the MACD indicator.
