MACD (moving average convergence/divergence) Indicator for MT4

Moving Average Convergence Divergence (MACD) Indicator for MT4 was designed by Gerald Appel in the late 1970s. MACD is designed to analyse trends direction, moves and mainly its time and strength.

MACD (moving average convergence/divergence) Indicator for MT4:

MACD is also a member oscillator family use histogram to show different signals and based on two bars and lines. MACD work predetermined numerical data setting (9, 12, 26) MACD work on bar graph. As we come to MACD interface there are two lines MACD blue line and red dotted signal line.

Characteristics of MACD Indicator:

  • Chart: Candlestick, Renko
  • Indicators: two moving averages.
  • How MACD indicator for MT4 works:
  • Time frame: any
  • Platform: MT4 and MT5
  • Currency pair: any
  • Time sires: three

Formula used for MACD is as: MACD={12-Period EMA }-{ 26-Period EMA}

Where: 12 EMA is short period and 26 EMA is longer period. The distance between short period and long period represent  difference of MACD from zero line. If they are close MACD and signal line areclose if they are on distance goes invercly.

Signals of MACD indicator for MT4:

  1. Sell: downward trend indicate potential seller strength on trend as the trend low the lower trend become week.
  2. Buy: upward trend indicates potential buyers’ strength on trend as the trend go high the higher trend become weak.
  3. Crossover: a trend is changing its direction.
  4. Above zero line: when the MACD is above signal line, market is bullish
  5. Over zero line: confirmation of a strength of a current trend.
  6. Cross below zero: when the MACD is below signals line, market is bearish.
  7. Over bought and over sold: when market move very quickly up and down it is over bought and sold signals.

Limitations of MACD Indicator for MT4:

MACD interface is confusing for new traders need to understand and learn. Best setting for MACD is 9, 12, and 26 Some traders lower the setting of MACD to get faster signals but, faster signals probably be the false ones. Sometimes MACD provide reversal signals but in actual they are not reversal signals. MACD is used only for trend confirmation other aspects are also necessary at this point other indicators are needed. MACD another lack is timing difference between MACD and signals line so in my opinion it requires a lot of practice and experience.

Merits if MACD Indicator for MT4:

MACD is the simplest and very reliable indicators used by many Forex traders and MACD work on relating two EMAs make it effective for every market. MACD is one of the important ingredients in many profitable trading strategies, MACD work on finding two moving averages. Combined RSI and MACD indicators can be best to find overbought and oversold levels.


MACD is best and most efficient indicator but not a robotic indicator so it depends on user the way he uses it there is not a right or wrong way to use it. Its performance depends on the strategy you form with this indicator and the indicators you combine in it, your understanding about signals.

42 Replies to “MACD (moving average convergence/divergence) Indicator for MT4”

  1. I think this is one of the most vital information for me.
    And i’m glad reading your article. But wanna remark on some general things,
    The site style is wonderful, the articles is really excellent :
    D. Good job, cheers

  2. You need to take part in a contest for one of the highest quality websites online.
    I most certainly will recommend this website!

  3. I am sure this paragraph has touched all the internet people, its really really nice piece of writing on building up
    new weblog.

  4. Hi there! I know this is kinda off topic but I was wondering if
    you knew where I could find a captcha plugin for my comment form?
    I’m using the same blog platform as yours and I’m having problems finding one?

    Thanks a lot!

    Review my web site :: vpn special code

  5. I discovered your blog site on google and test a couple of of your early posts. Proceed to maintain up the excellent operate. I simply additional up your RSS feed to my MSN News Reader. Searching for forward to reading more from you in a while!…

  6. Pretty nice post. I just stumbled upon your weblog and wished to say that I’ve really enjoyed browsing your blog posts. In any case I will be subscribing to your feed and I hope you write again soon!

  7. I really appreciate this post. I have been looking all over for this! Thank goodness I found it on Bing. You have made my day! Thank you again

  8. Whats Happening i’m new to this, I stumbled upon this I have found It positively useful and it has aided me out loads. I hope to give a contribution & aid other customers like its aided me. Good job.

  9. Very efficiently written story. It will be helpful to everyone who utilizes it, as well as yours truly :). Keep up the good work – for sure i will check out more posts.

  10. Can I just say what a relief to find someone who actually knows what theyre talking about on the internet. You definitely know how to bring an issue to light and make it important. More people need to read this and understand this side of the story. I cant believe youre not more popular because you definitely have the gift.

  11. Good day! This is kind of off topic but I need some guidance from an established blog. Is it very hard to set up your own blog? I’m not very techincal but I can figure things out pretty fast. I’m thinking about setting up my own but I’m not sure where to start. Do you have any tips or suggestions? Appreciate it

  12. I do accept as true with all the ideas you’ve introduced on your post. They’re really convincing and can definitely work. Still, the posts are too short for novices. Could you please prolong them a little from next time? Thanks for the post.

  13. Fantastic site. Lots of helpful information here. I am sending it to some pals ans additionally sharing in delicious. And of course, thanks on your effort!

  14. It is really a nice and helpful piece of info. I’m glad that you shared this useful information with us. Please keep us up to date like this. Thank you for sharing.

  15. I was just seeking this info for some time. After six hours of continuous Googleing, at last I got it in your site. I wonder what’s the lack of Google strategy that do not rank this kind of informative websites in top of the list. Usually the top sites are full of garbage.

  16. I am really inspired along with your writing abilities and also with the layout on your weblog. Is that this a paid theme or did you customize it your self? Anyway stay up the nice quality writing, it’s rare to see a nice weblog like this one today..

  17. Hi, Neat post. There’s a problem with your website in internet explorer, would check this… IE still is the market leader and a huge portion of people will miss your fantastic writing because of this problem.

  18. I have been absent for some time, but now I remember why I used to love this blog. Thank you, I¦ll try and check back more often. How frequently you update your web site?

  19. obviously like your web site however you have to take a look at the spelling on several of your posts. Several of them are rife with spelling problems and I find it very bothersome to tell the reality however I will surely come again again.

  20. I like what you guys are up too. This type of clever work and exposure! Keep up the awesome works guys I’ve incorporated you guys to my personal blogroll.

  21. naturally like your website but you have to check the spelling on several of your posts. Many of them are rife with spelling issues and I to find it very bothersome to inform the reality on the other hand I’ll certainly come again again.

  22. I really appreciate this post. I have been looking all over for this! Thank goodness I found it on Bing. You’ve made my day! Thank you again

  23. Thanks for sharing excellent informations. Your web site is so cool. I am impressed by the details that you’ve on this web site. It reveals how nicely you understand this subject. Bookmarked this web page, will come back for more articles. You, my friend, ROCK! I found just the info I already searched everywhere and simply could not come across. What a great web-site.

  24. Very good written post. It will be beneficial to everyone who usess it, as well as myself. Keep doing what you are doing – looking forward to more posts.

  25. I cling on to listening to the rumor talk about receiving free online grant applications so I have been looking around for the most excellent site to get one. Could you advise me please, where could i get some?

  26. Have you ever thought about writing an ebook or guest authoring on other websites? I have a blog based upon on the same topics you discuss and would really like to have you share some stories/information. I know my audience would enjoy your work. If you’re even remotely interested, feel free to shoot me an e-mail.

  27. Thank you, I have recently been looking for information about this subject for ages and yours is the greatest I have found out till now. But, what in regards to the conclusion? Are you certain about the supply?

  28. Thanks for any other informative blog. Where else could I get that type of info written in such a perfect approach? I’ve a mission that I’m just now running on, and I’ve been at the glance out for such info.

  29. I do accept as true with all the concepts you have offered to your post. They’re really convincing and can certainly work. Nonetheless, the posts are very brief for starters. May just you please prolong them a bit from next time? Thanks for the post.

  30. Hey very nice site!! Man .. Beautiful .. Amazing .. I’ll bookmark your blog and take the feeds also…I’m happy to find numerous useful information here in the post, we need develop more techniques in this regard, thanks for sharing. . . . . .

  31. What’s Happening i am new to this, I stumbled upon this I’ve found It positively helpful and it has helped me out loads. I hope to contribute & aid other users like its helped me. Great job.

Leave a Reply

Your email address will not be published. Required fields are marked *