MACD 2 Color Histogram Indicator MT4

MACD 2 Color Histogram Indicator MT4

The MACD 2 Color Histogram Indicator MT4 is designed to measure price momentum and highlight potential entry signals in trading. This indicator presents histograms in two distinct colors: green bars signal bullish momentum, while red bars highlight bearish momentum.

MACD 2 Color Histogram Oscillator Specifications Table

The following table outlines the key parameters of the MACD 2 Color Histogram Indicator:

MACD 2 Color Histogram Indicator in Action

Signals within this oscillator are generated when the MACD line intersects with the signal line.

• Bullish crossover (upward) = possible buy setup.
• Bearish crossover (downward) = potential sell setup.

Buy Example

On the 15-minute AUD/USD chart, an upward cross of the MACD line above the signal line indicates a valid buying signal. The simultaneous appearance of green histograms reinforces the bullish sentiment.

Sell Example

On the 1-hour EUR/USD chart, a downward MACD crossover identifies a selling signal. As long as red histograms continue to appear, the bearish phase is expected to remain intact.

MACD 2 Color Histogram Indicator Settings

Key adjustable inputs for this indicator include:

• FAST_EMA: Defines the short-term moving average calculation.
• SLOW_EMA: Determines the long-term moving average calculation.
• SIGNAL: Sets the EMA for the signal line.
• LOOKBACK_LIMIT: Restricts the historical range for calculation or visualization.

Conclusion

The MACD 2 Color Histogram Indicator MT4 provides traders with an easy way to interpret market momentum by switching histogram colors between bullish and bearish phases. Along with MACD line crossovers against the signal line, it offers clear entry points for both buy and sell opportunities.

Furthermore, traders can fine-tune parameters such as fast EMA, slow EMA, and signal EMA to match their preferred strategy.