MACD Message is an analogue of the MACD Alert for the MetaTrader 4 terminal with more advanced functionality:
Parameters 'Averaging Method' and 'Price Type' (MA method and Apply to) are displayed in the settings window. It gives an advantage of monitoring convergence/divergence of all types of Moving Average (Simple Averaging, Exponential, Smoothed and Linear Weighted) and by any price (Closing Price, Opening Price, the Maximum Price for the Period, the Minimum Price for the Period, Median Price, Typical Price and Average Price).
The indicator reports the divergence of a weakening trend with the price at the last bar - the Divergence on Last Bar optional function. The outline of the indicator bars is colored according to the trend. The histogram color (Color Histogram MACD) can change according to the settings in the properties window of the MACD Message indicator:
- Convergence-Divergence – parameter changes the histogram color in case of a convergence and divergence of the Fast Moving Average and Slow Moving Average, that is, growth or weakening of the MACD bars.
- Trend Moving Average – parameter changes the histogram color in case the inclination angle of the Fast Moving Average or Slow Moving Average changes individually or both together.
- Momentum - parameter changes the histogram color when the Momentum values cross the 100 level, according to the periods: Fast Moving Average - Fast Momentum or Slow Moving Average - Slow Momentum individually or both together.
- Close Bars - parameter changes the histogram color in case the bars in the main window of the chart are closed above/below the Fast Moving Average, Slow Moving Average individually or both together.
Parameters of the Color Histogram MACD can be used individually, together or can be disabled.
The built-in functions of alerts represented by the comment in the top left corner of the chart, displaying of a dialog window, forwarding messages to the email address and mobile phone allow to monitor the signals:
- Beginning of an uptrend — MACD bars move from negative area (below zero) to positive area;
- Beginning of a downtrend — MACD bars move from positive area (above zero) to negative area;
- Weakening uptrend – bars are in the positive area but are formed below the signal line;
- Prevailing uptrend – growth of bars in the positive area above the signal line;
- Weakening downtrend – bars are in the negative area but are formed above the signal line;
- Prevailing downtrend – fall of bars in the negative area below the signal line.
- Downwards divergence – growth of the price on the last bar is higher than on the previous one in the weakening uptrend.
- Upwards divergence – fall of the price on the last bar is lower than on the previous one in the weakening downtrend.
- Signal of the indicator bars is positive – the sum of the selected parameters of the Color Histogram MACD gives a positive signal.
- Signal of the indicator bars is negative – the sum of the selected parameters of the Color Histogram MACD gives a negative signal.
- Signal of the indicator bars is missing – the sum of the selected parameters of the Color Histogram MACD does not give a signal.
More functional version of the indicator: MACD Converter.