MACD Alert indicator shows the difference between two moving averages. It is one of the best forex signals indicating tools. MACD stands for Moving Average Convergence and Divergence.
How MACD Alert Indicator MT4 works?
MACD shows whether moving averages are getting closer or farther away on the histogram chart. The difference of values from zero indicates gain and loss of momentum.
Gain
If values are farther from zero, it indicates a gain in momentum.
loss
The values closer to zero usually indicate a loss of momentum.
How to Trade with MACD Alert Indicator?
MACD is very useful for all types of traders. To trade using this indicator, find the up and downward arrows around the price bar at the main chart window.
An upward arrow signals the bullish signal, and a downward arrow signals the bearish trend.
You have to follow the arrow direction, and whenever an opposite arrow is plotted on the chart, exit the trade.
Buying strategy
Start the buy trade at the break of the respective bullish bar’s high. When the Price bar closes as a bullish bar at the bottom area of the chart, then the MACD indicator will plot an upward arrow. In contrast, start to buy trade and set stop loss limit below the current swing low area.
Selling strategy
Start the sell trade at the break of the respective bearish bar’s low, when the Price bar closes as a bearish bar at the top of the chart, and MACD Indicator plots a downward arrow. Set stop-loss limit above the current swing high area, and whenever MACD plots an upward arrow at the bottom area of the chart, exit the trade.
Inputs of MACD Alert Indicator
The following table shows the input parameters of this indicator. Feel free to experiment with these settings in the input box.
Conclusions
The MACD Alert has proven that one chart with a couple of signaling arrows can be enough to make money from the Forex market consistently and made Forex trading simpler than ever for all traders. Use this indicator in conjunction with other trend-following tools to get more accurate results.
Get your MACD Alert Indicator free download here
Also, learn about the Pattern recognition indicator
Download indicator