How to Add MACD Indicator on MetaTrader 4 Charts - Adding MT4 MACD Forex Chart Indicator
Step 1: Open Navigator Window on FX Trading Platform
Open Navigator window as shown & illustrated below: Go to 'View' menu (click on it), then select 'Navigator' window (click), or From Standard Tool Bar click the 'Navigator' button or press keyboard short cut keys 'Ctrl+N'
On Navigator window, choose 'Indicators', (Double-Click)
How to Add MACD Indicator on MetaTrader 4 - MT4 MACD Indicator
Step 2: Expand the Indicators Menu on the Navigator - Adding MACD MT4 Chart 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 forex chart indicator from this list of forex indicators so as to add the MACD indicator on the forex chart.
How to Add MACD Indicator - From the Above window you can then place MACD indicator that you want on the Forex chart
How to Add Custom MACD Indicator to MT4
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 indicators in MetaTrader 4 software.
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 indicator in MetaTrader 4.
About MACD Technical Indicator Tutorial Explained
MACD Forex Technical Analysis Signals
Created by Gerald Appel,
The Moving Average Convergence/Divergence is one of the simplest, reliable, and most commonly used indicators.
It is a momentum oscillator & also a trend-following indicator.
Construction
The construction of this indicator calculates the difference between two moving averages and 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 panel 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 & a 26-period exponential moving average & a 9-period exponential moving applied to the fast line, this plots 'Signal' line.
- Fast-line = difference between 12 & 26 exponential moving averages
- Signal Line = moving average of this difference of 9-periods
FX Technical Analysis & How to Generate Signals
The MACD is oftenly used as a trend-following indicator and works most effectively when interpreting trending market movements. 3 common techniques of using MACD to generate signals are:
FX Crossovers Forex Trading Signals:
Fast-line/Signal-line Crossover:
- A buy trading signal is generated when Fast Line crosses above Signal Line
- A sell trading signal is generated when FastLine crosses below Signal Line.
However, in a strong trending market this signal gives a lot of whipsaws, the best cross-over to use would thus be the Zero Line Crossover Signal that is less prone to whipsaws.
Zero Line Crossover 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 trading signal is generated.
FX Divergence Forex 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 indicator 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 & it will soon return to more realistic levels.
MACD and Moving Average FX Crossover Forex Trading System
This indicator can be combined with others to form a Forex system. A good combination with the Moving Average crossover system. A trading signal is generated when both give a signal in same direction.
Technical Analysis in FX Trading
