MACD Histogram Multi Color v04 Indicator For MT5
Table Of Contents:
- MACD Histogram Multi Color v04 Indicator For MT5
- Histogram bars
- Signal curve
- Executing long orders
- Managing the risk
- Conclusion
The MACD Histogram Multi Color v04 Indicator For MT5 might become your favorite tool in Forex trading. Almost everyone is familiar with normal MACD indicator but people tend to ignore that indicator due to its repainting nature. So, what is repainting? If the readings or curve of any indicator get changed without any prior notice, you can call it a repainting indicator. Many classic indicators are ignored by the successful trader as it repaints its value. Unlike those, the MACD Histogram Multi Color v04 Indicator For MT5 generates potential signals based on complex mathematical calculations.
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
Though the calculation in the MACD Histogram Multi Color v04 Indicator For MT5 is dependent on complex algorithms, the readings are fairly easy. The naïve traders might get fooled based on the data of the indicator. Indicators generate data only to help the traders to assess the quality. So, expecting a 100% accuracy is going to make your trading very worse. However, if you use the MACD Histogram Multi Color v04 Indicator For MT5 as your quality assessment tools, you can improve a lot in the Forex trading business.
Histogram bars
There are two segments in the MACD Histogram Multi Color v04 Indicator For MT5. Let’s start with the histogram bars. Just like our traditional or basic indicators, red bars signal selling pressure and the green bar indicators the buyer's strength. But these red and green bars are created on both sides of the reference line. If you notice the indicator window, you find a grey colored horizontal line in the middle of the window with a value set at 0. When you have green bars above the horizontal line or reference line, it indicators, the bullish continuation signal. On the other hand, if the green bars are generated on the negative side of the reference line, this means a bullish correction is in place. Just like this, red color bars in the positive side signals bearish continuation and the opposite of reference line means a bearish correction is in place.
Signal curve
The signal curve of the MACD Histogram Multi Color v04 Indicator For MT5 is comprised of two EMA or exponential moving average. First one is slowing moving EMA value is set to 12 and the second one is fast EMA which has a value of 26. When the 26 EMA crosses below the 12 EMA, you can consider this a bearish sign. On the contrary, if the 26 EMA crosses above the 12 EMA, you have to consider this as a bullish reversal signal. But you have to care where the cross over takes place. Bullish crossover taking place below the reference line should not be considered as a buying signal. It will act more like a bullish correction signal. On the contrary, bearish crossover taking place above the reference line indicates bearish correction. Look for the crossover in the appropriate position to place your order.
Executing long orders
To execute any orders, you should be careful with the position of the bars and signals curves. Though you know the key details to place the order, the still theoretical or papaer based explanation is not good to learn new strategies. Let’s find out simple long trade signals in the EURUSD majors with the help of MACD Histogram Multi Color v04 Indicator For MT5.
Figure: Use of MACD Histogram Multi Color v04 Indicator For MT5
Priority should be given to the critical support for the placement of any long trade. UTL (Up Trend Line) has been used to spot our critical support. At the third point, we had a nice PA or price action signal which is good enough to place a long trade. But the conservative traders will take a look at the MACD Histogram Multi Color v04 Indicator For MT5. At that instance, we had a bullish crossover and the histogram bar was green. Both of these signals were on the positive side of the reference line. So, a decent buying opportunity based in EURUSD pair.
Managing the risk
MACD Histogram Multi Color v04 Indicator For MT5 is an amazing instrument to filter out the quality trades. Some of you might forget the fact, the use of any tools requires perfect utilizations of the money management policy. If you forget the risk factors during the trade placement, you will end up with a high-risk strategy. Though you might have a decent win rate, the odds of making a profit, in the long run, is very low. Money management is such a crucial thing that is supposed to be learned before trading the real market. Bring some variations to your lot size and if required lower down the risk exposure, to keep the risk factors within your limit. Observe the trading history of the successful traders, and get an idea of money management. Turning into an aggressive trader to earn more money doesn’t give you a good result.
Conclusion
Learning or mastering trading is not an easy task. You can say, the MACD Histogram Multi Color v04 Indicator For MT5 can be used in a great way to make bigger gains. But such drastic measures will cost you money. You have to be very careful with the process of your trade execution and only then you can secure yourself as a professional trader. You have to develop the mind of the professional traders. Once you start thinking like pro investors, you won’t rely on the MACD Histogram Multi Color v04 Indicator For MT5. Tools, indicators, and EAs are your helping tools. And if you can embrace this fact from the bottom of the hearing, you will become a profitable trader.
