MACD 2 LINE INDICATOR MT5
Visually convenient and more functional replacement for the standard MACD indicator for MT5. Also the MACD-2 indicator gives you entry points.
- Unfortunately, some standard MT5 indicators are not well enough geared to analyze changing situations in the Forex market. That’s not just because of the rise in the number of real participants, but also the use of robots and algorithms during trading.
So we offer you to learn about the free custom indicator MACD-2, which is an updated and improved version of the standard MT5 MACD oscillator. And no matter which trading approach you’re using – swing, intraday or long-term trading – the indicator can be a nifty complement to your trading system.
MACD-2 has a number of advantages over the standard MACD:
- First, the indicator draws colored cloud – like the fast EMA and the slow EMA. Entry signals are generated when the cloud changes its color.
- Second, the histogram volumes have four colors. If the volume color is brown or violet, only selling should be considered; if the volume color is blue or light blue, you should consider buying only.
- While the MACD has a common volume histogram and one EMA, the MACD-2 divides the indicator’s histogram volumes into bullish and bearish ones, and the cloudy moving average provides a larger number of prospective entry points for trading.
How to trade with MACD-2 Indicator
- To illustrate how to use the MACD-2 indicator, we’re going to analyze a Buy trade on the H1 timeframe.
- As you can see from the above example, the uptrend line serves here as an additional technical analysis tool: we should look for buying opportunities only until it’s broken below.
The above chart shows a buying-friendly conditions made up of the combination of the blue histogram volumes, the bullish trendlines, and the signal generated by the MA indicator.
Stop Loss for a prospective trade should be placed beyond the trendline, and position can be closed after hitting the maximum overbought readings.
Conclusion
- The MACD-2 indicator is a great alternative to the standard MACD that you would like to use in your trading. MACD-2 for MT5 generates technical analysis signals for trading based on moving averages and the volume histogram. Thanks to visually noticeable signals, you will always be aware of the most profitable trade entry points.
