How to Set MACD on MetaTrader 4 Charts - Adding MT4 MACD Chart Indicator

Step 1: Open the Navigator Panel on Trading Software Platform

Open Navigator window like is shown & illustrated below: Go to the 'View' menu (press on it), then select 'Navigator' panel (click), or From Standard ToolBar click 'Navigator' button or press key board short cut keys 'Ctrl+N'

On Navigator window, select 'Indicators', (DoubleClick)

How to Set MACD in the MT4 Software - MT4 MACD - How Do You Use MACD in Forex?

How Do You Add MACD on MT4 - MT4 MACD Indicator

Step 2: Expand the Indicators Menu on the Navigator - Adding MACD MT4 Indicator

Expand this menu by clicking the expound tool mark off "+" or double-click the 'indicators' menu, after which this particular specified button will appear and be shown as (-) & will now display a list just as shown below - select the MACD chart indicator from this list of trading indicators so as to add the MACD to the chart.

How Do I Add MACD on a Chart? - MACD Settings on MT4

How Do I Add MACD - From the Above window you as a trader can then place MACD that you as a trader want on the chart

How to Set Custom MACD to MT4

If the indicator you want to add is a custom indicator - for example if the MACD you want to add is a custom indicator you will need to first add this custom MACD on the MetaTrader 4 software and then compile the custom MACD so that as the newly added MACD custom indicator pops up on the list of custom technical indicators on MT4 software.

To learn how to install MACD indicators in the MetaTrader 4 Platform, how to add MACD panel to MT4 and how to add MACD custom technical indicator in MetaTrader 4 Platform - How to add a custom MACD in the MT4 Software.

About MACD Tutorial Explained

MACD Analysis Signals

Developed by Gerald Appel,

The Moving Average Convergence/Divergence is one of the simplest, reliable, and most often used trading indicators.

It's a momentum oscillator and also a trend following technical indicator.

Construction

The construction of this technical indicator calculates the difference between 2 MAs and then plots that as 'Fast' line: the second 'Signal' line is then calculated from the 'Fast' line and then drawn on the same window as '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 fastline, this draws 'Signal' line.

Fast-line = difference between 12 and 26 exponential moving averages
Signal Line = Moving Average of this difference of 9-periods

Momentum Oscillator Indicators - MACD Setting in MT4

FX Analysis and How to Generate Trading Signals

The MACD is oftenly used as a trend following technical indicator and works most efficiently when interpreting the trending market movements. 3 common techniques of using MACD to generate signals are:

FX Crossovers Signals:

Fast-line/Signal-line Crossover:

A buy signal is generated/derived when the Fast Line crosses above SignalLine
A sell trade signal is derived/generated when the 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's less prone to fake outs.

Zero Line Cross-over Signals:

When the Fast Line crosses above zero center-line a buy trade signal is generated.
when the FastLine crosses below zero center line a sell trade 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 two types of divergences:

Classic Divergence Trading Setup Signals
Hidden Divergence Setup Signals

Overbought/Over-sold Conditions:

MACD is also used to spot potential overbought-oversold conditions in price action movements.

These levels and regions are derived & generated if the shorter MACD Lines separate significantly from the median, this is an indication that price action is over-extending and it'll soon return to the more realistic levels.

MACD and MA Cross over System

This trading indicator can be combined with other indicators to form a strategy. A good combination with the Moving Average cross-over trading system. A trade signal is generated/derived when both give a signal in the same direction.

How Do You Use MACD Indicator? - MACD Setting in MT4 Platform - How Do You Add MACD in MT4 Charts?