MACD Color Indicator is an upgraded version of the world’s one of the best Forex momentum indicators “MACD”. It works almost the same as its original version but the visibility and signal demonstration have become visibly clearer to understand and it also generates the signals with less lagging issues with the latest version.
MACD Color Indicator is usable at any Forex currency pair window and fits well with all sorts of timeframe charts. Besides, the easy signal reading and simplicity of use have made it more and more appealing to the newbie momentum following traders.
MACD Color Indicator Overview
After the installation of the MACD Color Indicator at your Forex MT4 terminal, your trading chart will appear like the following image:
MACD Color Indicator uses a MA (thin black) and its histogram bars all together to generate the momentum signals. Usually, The MA value turns positive and the MACD bars closing above the MA level with a rising pattern confirms the bullish momentum. On the other hand, an MA value turns negative and the MACD bars closing below the MA level signals the bearish momentum. Both the MACD bars and the MA returning towards its zero parameter signal the weakening of the current market momentum.
MACD Indicator: MACD Cross Indicator
MACD Color Indicator: Buy Parameters
- MACD MA turns positive
- MACD bars turn green and hold its levels above the MA level
- A bullish bar forms at the same time
- Buy triggers at the break of the bullish bar’s high
- Set stop loss below the respective signaling bar’s low
- Exit long/take profit whenever MACD bars start to close below the MA level with a falling pattern
MACD Color Indicator: Sell Parameters
- MACD MA turns negative
- MACD bars turn red and hold its levels below the MA level
- A bearish bar forms at the same time
- Sell triggers at the break of the bearish bar’s low
- Set stop loss above the respective signaling bar’s high
- Exit short/take profit whenever MACD bars start to close above the MA level with a rising pattern