MACD Divergence Forex Indicator is a combination of the MACD indicator and the divergent lines.
The indicator displays divergent lines both on the main trading chart and on the cart below the trading chart. The MACD indicator is displayed on a separate chart below the trading indicator. On the chart where the MACD Divergence indicator is displayed there are also divergent lines and signal arrows that are displayed. The arrows are either red or green. Red arrows shows a sell signal while the green arrow shows a buy signal.
The MACD Divergence indicator has a zero line (center line) from where bars form on either side. The bars that form on the lower side of the zero line are maroon in color while those that form above the zero line are green in color. The bars that form below the zero line shows that the trend is on the downward side while those that for above the zero line shows an upward trend.
Fig.1. The MACD divergence indicator.
The divergent lines are green dotted, green and continuous or red and continuous. The divergent lines that are formed on the trading chart are towards a different direction to those formed on the indicators chart but they all show the same thing. For example if the divergent line on the main trading chart is green and towards the upward direction then the one that will be formed on the indicator’s chart will be green but down wards. The reason behind this is that for any signal to be given, then the market prices must be at the maximum of the current trend; this is to mean that a buy signal is given after downward trend has reached its maximum and the market prices have started to rise. Therefore, the divergent of the on the indicator’s chart will point down to the point where the indicators down trend indication gets to.
How to place orders using the MACD divergence indicator
Although understanding how this indicator works is a bit tough, when it comes to placing orders, you need not know the logic behind its working but only how to interpret its signals. The signal to look out for is the arrow on the indicators chart that is usually bellow the main trading chart. The arrow can either be red or green. In case of a red arrow then the trader should get ready to sell while if the arrow is green the trader should get ready buy.
Opening a buy position: the trader should open a buy position when a green arrow appears on the MACD indicator’s chart. The green arrow will appear when the bars are maroon and below the zero line but when at their maximum length meaning after the arrow appears the market prices will rise from then hence forth.
Opening a sell position: the trader should open a sell position when a red arrow appears on the MACD indicator’s chart. The red arrow will appear when the bars are greed and above the zero line but when at their maximum length meaning after the arrow appears the market prices will drop from then hence forth.
Illustrating when to place orders.
Forex Indicators Download – Instructions
MACD Divergence Forex Indicator is a Metatrader 4 (MT4) indicator and the essence of the forex indicator is to transform the accumulated history data.
MACD Divergence Forex Indicator provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can assume further price movement and adjust their strategy accordingly.
Do the same with template file (.tpl), if there is any, at File/Open Data Folder/templates.
How to install MACD Divergence Forex Indicator.mq4?
- Download MACD Divergence Forex Indicator.mq4
- Copy MACD Divergence Forex Indicator.mq4 to your Metatrader Directory / experts / indicators /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your indicator
- Search “Custom Indicators” in your Navigator mostly left in your Metatrader Client
- Right click on MACD Divergence Forex Indicator.mq4
- Attach to a chart
- Modify settings or press ok
- Indicator MACD Divergence Forex Indicator.mq4 is available on your Chart
How to remove MACD Divergence Forex Indicator.mq4 from your Metatrader 4 Chart?
- Select the Chart where is the Indicator running in your Metatrader Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete
Download Metatrader 4 Trading Platform:
- Free $30 To Start Trading Instantly
- No Deposit Required
- Automatically Credited To Your Account
- No Hidden Terms
Click The Link Below To Download: