Custom MACD Indicator MT4
- Indicators
- Eda Kaya
- Version: 1.3
Custom MACD Indicator for MetaTrader 4
The Custom MACD Indicator for MetaTrader 4 is a powerful analytical tool used widely in technical trading to evaluate trend momentum, direction, and strength. It consists of two essential elements:
• MACD Line (blue): Derived from the gap between two exponential moving averages
• Signal Line (red): A smoothed average of the MACD line, aiding in pinpointing trend reversals with greater accuracy.
«Indicator Installation & User Guide»
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Custom MACD Specifications Table
The primary features of the Custom MACD Indicator are outlined below:
| Category | Signal Generation – Oscillator – Technical Tool |
| Platform | MetaTrader 4 |
| Skill Level | Intermediate |
| Indicator Type | Momentum – Reversal Detection |
| Timeframe | Multi-timeframe Support |
| Trading Style | Intraday Strategy |
| Trading Market | Universal (Forex, Stocks, Crypto, etc.) |
Indicator Overview
This version of the Custom MACD Indicator works by calculating the spread between two Exponential Moving Averages (EMAs):
• A short-term EMA with a setting of 12
• A longer-term EMA set to 26
The MACD line is the difference between these EMAs, while the Signal Line (shown in red) is a 9-period EMA of the MACD line. Both are displayed inside the oscillator window. Buy and sell opportunities often emerge at points where the MACD line intersects the Signal Line.
Uptrend Conditions
On the Dow Jones (DJI) hourly chart, a shift toward bullish momentum is observed. This occurs as the MACD line moves above the red Signal Line—signaling a potential uptrend. Such upward crossovers are typically seen as buy signals and offer favorable entry levels.
Downtrend Conditions
In the GBP/USD 1-hour chart below, a downward crossover confirms bearish momentum. Here, the MACD line dips beneath the Signal Line, indicating a likely trend reversal. These situations are commonly viewed as alerts to prepare for a price decline.
Indicator Settings
The configuration panel of the Custom MACD Indicator includes the following options:
• Fast MA Period: Defines the short-term moving average calculation
• Slow MA Period: Controls the longer-term moving average input
• Signal Period: Sets the smoothing period for the Signal Line
Conclusion
The Custom MACD Indicator for MetaTrader 4 uses the relationship between two EMAs to provide trend insights and signal generation. With adjustable parameters, traders can customize the indicator to align with various trading environments and asset classes.
The crossover signals it generates offer valuable guidance for both entry and exit points across multiple markets.
