On the last tip, we saw how to use the Forex Indicator MA (Movile Average) on Metatrader 4. Today, we will be focusing on How to Use the Forex Indicator MACD, part of the indicators on MT4.
The technical analysis Forex Indicator, MACD (Moving Average Convergence/Divergence) allows us to identify possible entry points on an oscillating situation.
How to Add the Forex Indicator MACD on Metatrader 4?
The parameters for this indicator are:
Fast EMA: Fast Moving Average 12 periods here.
Slow EMA: Slow Moving Average, 26 periods here.
The MACD line that is calculated by substracting the value of the Slow MA from the Fast MA and taking 9 periods in this example.
Apply to: It’s always applied to the candlelight CLOSE.
In this example we can see two entry points.
The first one, when the blue line of the MACID crosses the red line upwards (yellow area), it is a signal to take long positions.
The second one, when the blue MACD line crosses the red line downwards (yellow area), it is a signal to take short positions.
The Histogram blue lines will help to confirm if the market is bullish (above 0 level) or bearish (below 0 level)