Introduction to the 2Line MACD Indicator
The 2Line MACD Indicator is an improved and updated version of the standard MetaTrader 4 MACD oscillator.
The indicator is displayed in a separate window placed just below the main trading chart. It draws exponential moving averages and volume histogram.
It fits all kinds of timeframes and currency pairs.
The default indicator settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.
How does it work? How to apply in trading?
Trading Rules Explanation
First, you need to determine the overall market trend. You can use trendline or moving average for that purpose.
More advanced traders can utilize bounces from supply and demand or pivot levels.
The indicator itself generates bearish and bullish signals on EMA’s crossover.
For long trades, the blue ema should cross above the red ema, and the histogram should carry positive values (green color).
For short trades, the blue ema should cross below the red ema, and the histogram should carry negative values (red color).
Close your open position when the opposite signal occurs, or use your own preferred method of trade exit.
Most importantly: trade only in the direction of the main trend.
As always, to achieve good results, remember about proper money management. To be a profitable trader you need to master discipline, emotions, and psychology. It is crucial to know when to trade, but also when not to trade. Avoid trading during unfavorable times and market conditions like low volume/volatility conditions, beyond major sessions, exotic currency pairs, wider spread, etc.
Example of USD/JPY M15 Chart
This screenshot below shows an example of 2 Lines MACD Indicator in action in conjunction with 200 EMA for trend determination.
How to set up the 2Line MACD indicator in MT4?
Copy and paste the MACD-2Line.mq4 or MACD-2Line.ex4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL4 > Indicators (paste here).
Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
The 2Line MACD indicator is well worth adding to your trading collection but remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, it will provide false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it.
2Line MACD Indicator Free Download
To download the 2Line MACD Indicator for Metatrader 4 (MT4) for free just click the button below: