MACD-2 Indicator

Indicator EA template available

An EA template is available for this indicator. Add a new EA to your account and choose the template matching the name of this indicator.

Introduction

Some standard MT5 indicators are not well-suited for analyzing changing situations in the Forex market due to the rise in real participants and the use of robots and algorithms. However, there is a free custom indicator called MACD-2 that can serve as an improved version of the standard MetaTrader 5 MACD oscillator. Regardless of your trading approach, MACD-2 can be a useful addition to your trading system.

Advantages of MACD-2

MACD-2 offers several advantages over the standard MACD. Firstly, it draws a colored cloud similar to the fast and slow EMAs, with entry signals generated when the cloud changes color. Secondly, the histogram volumes in MACD-2 have four colors, indicating whether selling or buying should be considered. Unlike the MACD, MACD-2 divides the histogram volumes into bullish and bearish ones, providing more potential entry points for trading.

Using MACD-2

To illustrate the use of MACD-2, let’s analyze a Buy trade on the H1 timeframe. In the example chart, the uptrend line serves as an additional technical analysis tool. Buying opportunities should be sought until the trendline is broken below. The combination of blue histogram volumes, bullish trendlines, and signals from the MA indicator indicates favorable buying conditions. Stop Loss should be placed beyond the trendline, and positions can be closed after hitting maximum overbought readings.

Conclusion

MACD-2 is a valuable alternative to the standard MACD for trading. It generates technical analysis signals based on moving averages and volume histogram, providing visually noticeable signals for identifying profitable trade entry points. You can download and install MACD-2 for free in your Metatrader 5 platform.