How to Add MACD Indicator on MetaTrader 4 Charts - Adding MT4 MACD Chart Indicator
Step 1: Open Navigator Window on Software
Open Navigator panel as shown and illustrated below: Go to 'View' menu (click on it), then choose 'Navigator' window (click), or From Standard Tool-Bar click 'Navigator' button or press keyboard shortcut keys 'Ctrl+N'
On Navigator window, select 'Indicators', (DoubleClick)
How Do You Add MACD Indicator on MetaTrader 4 - MT4 MACD Indicator
Step 2: Expand the Indicators Menu on the Navigator - Adding MACD MetaTrader 4 Indicator
Expand the menu by clicking the expand button marker (+) or double click the 'indicators' menu, after this the button will appear as (-) and will now display a list as shown below - select the MACD chart indicator from this list of indicators so as to add the MACD indicator on the chart.
How Do I Add MACD Indicator - From the Above window you can then place MACD indicator that you want on the chart
How to Add Custom MACD Indicator to MetaTrader 4
If the technical indicator you want to add is a custom indicator - for example if the MACD technical indicator you want to add is a custom indicator you will need to first add this custom MACD indicator on the MT4 platform & then compile custom MACD technical indicator so that the newly added MACD custom indicator pops up on the list of custom technical indicators in Meta Trader 4 platform.
To learn how to install MACD indicators on MT4, how to add MACD indicator window to MT4 and how to add MACD custom indicator in MT4 - How to add a custom MACD in MetaTrader 4.
About MACD Technical Indicator Tutorial Explained
MACD Analysis Signals
Developed by Gerald Appel,
The Moving Average Convergence/Divergence is one of the simplest, reliable, and most commonly used indicators.
It's a momentum oscillator & also a trend-following indicator.
Construction
The construction of this indicator calculates the difference between two MAs & then plots that as the 'Fast' line: the a second 'Signal' line is then calculated from the resulting 'Fast' line and then drawn on the same window as the 'Fast' line.
- 'Fast' line - Blue Line
- 'Signal' line - Red Line
The 'standard' MACD values for the 'Fast' line is a 12-period exponential Moving Average and a 26-period exponential Moving Average and a 9-period exponential moving applied to the fast line, this plots 'Signal' line.
- Fast-line = difference between 12 and 26 exponential moving averages
- Signal Line = Moving Average of this difference of 9-periods
Forex Analysis & How to Generate Signals
The MACD is oftenly used as a trend-following indicator & works most effectively when interpreting trending market movements. 3 common techniques of using MACD to generate signals are:
FX Crossovers Trade Signals:
Fast-line/Signal-line Crossover:
- A buy signal is generated when Fast Line crosses above Signal Line
- A sell signal is generated when FastLine crosses below Signal Line.
However, in a strong trending market this signal gives a lot of whipsaw fakeouts, the best cross-over to use would thus be the Zero Line Crossover Signal that is less prone to fake outs.
Zero Line Cross over Signals:
- When the Fast Line crosses above zero center line a buy signal is generated.
- when the FastLine crosses below zero center line a sell signal is generated.
Divergence Trading:
Looking for divergences between the MACD and price can prove to be very effective in spotting the potential reversal and/or trend continuation points in price movement. There 2 types of divergences:
- Classic Divergence Signals
- Hidden Divergence Signals
Overbought/Oversold Conditions:
MACD is also used to spot potential overbought-oversold conditions in price action movements.
These levels are generated if the shorter MACD Lines separate dramatically from the median, this is an indication that price action is over-extending and it'll soon return to more realistic levels.
MACD and MA Cross over System
This indicator can be combined with others to form a trading system. A good combination with the Moving Average cross-over system. A trade signal is generated when both give a signal in same direction.
Analysis in Forex Trading
