About the MACD Signal Bars indicator
The MACD Signal Bars indicator for MT4 displays green and red bars in a histogram window below the main chart.
It is based on the MACD and highlights short-term trends.
Green bars indicate a bullish trend, while red bars indicate a bearish trend.
Traders can customize the indicator’s settings directly from the input tab to adjust sensitivity and signal frequency.
This beginner-friendly tool is ideal for scalping and day trading.
It helps traders quickly spot buy and sell opportunities while keeping analysis straightforward.
Free Download
Download the “macd-bars.mq4” MT4 indicator
Key Features
- Green and red histogram bars indicate bullish and bearish trends.
- Signals are generated from MACD calculations for accuracy.
- Customizable input settings for sensitivity and signal strength.
Indicator Chart
The chart below shows the MACD Signal Bars indicator in action.
Green bars appear during bullish trends and signal potential buy opportunities.
Red bars appear during bearish trends and signal potential sell opportunities.
The chart helps visualize market momentum and identify precise entries and exits for short-term trading strategies.
Guide to Trade with MACD Signal Bars
Buy Rules
- Wait for the first green histogram bar to appear.
- Confirm the bullish trend using additional tools if desired.
- Open a long position at the close of the first green bar.
Sell Rules
- Wait for the first red histogram bar to appear.
- Confirm the bearish trend using other indicators if needed.
- Open a short position at the close of the first red bar.
Stop Loss
- Place a stop loss just below the most recent swing low for buys.
- Place a stop loss just above the most recent swing high for sells.
Take Profit
- Close trades when an opposite color histogram bar appears.
- Alternatively, target the next support or resistance level.
- Scale out of positions gradually as the trend approaches key levels.
MACD Signal Bars and Forex Trend Manager MT4 Scalping Strategy
This MT4 scalping strategy combines the MACD Signal Bars Indicator with the Forex Trend Manager Indicator to create a fast and clear scalping system.
The Forex Trend Manager indicator uses colored clouds to define the current market direction, while the MACD Signal Bars indicator provides precise entry signals based on histogram color changes.
Together, they help you trade with trend confirmation and timely entries on lower time frames.
This strategy works best on M1, M5, and M15 charts and is ideal for major currency pairs with strong liquidity and clear directional movement.
By only entering trades when both trend clouds and the MACD histogram align, you improve your probability of catching quick price moves with reduced noise and false signals.
Buy Entry Rules
- The Forex Trend Manager cloud is blue indicating bullish trend conditions.
- The MACD Signal Bars indicator prints the first green histogram bar after a reset.
- Enter a buy trade at the close of the candle where the first green histogram bar appears.
- Place the stop loss below the recent swing low or just below the blue cloud area.
- Exit the trade when the cloud turns red or when a red histogram bar appears on the MACD Signal Bars.
Sell Entry Rules
- The Forex Trend Manager cloud is red indicating bearish trend conditions.
- The MACD Signal Bars indicator prints the first red histogram bar after a reset.
- Enter a sell trade at the close of the candle where the first red histogram bar appears.
- Place the stop loss above the recent swing high or just above the red cloud area.
- Exit the trade when the cloud turns blue or when a green histogram bar appears on the MACD Signal Bars.
Advantages
- Combines trend direction and momentum for higher probability scalps.
- Clear histogram and cloud visuals make entries easier to spot.
- Works well on fast time frames including M1, M5, and M15.
- Reduces countertrend scalping by requiring cloud alignment.
Drawbacks
- Signals may lag slightly after rapid price spikes.
- Needs tight risk management to protect profits.
- May generate fewer signals when price consolidates.
Case Study 1
On USDCHF M5 during the London session, the Forex Trend Manager cloud turned blue indicating bullish conditions.
Shortly after, the MACD Signal Bars printed the first green histogram bar following a brief pullback.
A buy trade was opened at the close of the signal candle with a stop loss placed just below the recent swing low.
Price moved quickly upward with strong momentum, and the trade was exited when the cloud turned red, capturing 22 pips.
Case Study 2
On EURJPY M1 during the New York session, the Forex Trend Manager cloud was red indicating bearish conditions.
The MACD Signal Bars indicator printed the first red histogram bar after a small consolidation.
A sell trade was entered at candle close with a stop above the recent swing high.
Price declined sharply and the position was closed when a green histogram bar appeared, making 14 pips.
Strategy Tips
- Only take buy signals when the cloud is blue and sell signals when the cloud is red to maintain trend alignment.
- Focus on major and liquid pairs with tighter spreads to improve scalping performance.
- Use higher time frames for context before entering lower time frame scalps.
- Keep stop losses tight but logical based on recent structure.
- Combine volume context and recent price action to confirm strength before entering.
- Limit the number of trades per session to avoid fatigue and overtrading.
Download Now
Download the “macd-bars.mq4” Metatrader 4 indicator
FAQ
Can beginners use the MACD Signal Bars indicator?
Yes, it is beginner-friendly. The green and red histogram bars provide clear trend signals without complex calculations.
Can I adjust the histogram sensitivity?
Yes, the settings in the input tab allow you to change MACD periods and signal behavior to suit your trading style.
How do I exit trades?
Close positions when the histogram changes color, or use your own exit strategy based on support and resistance levels.
Summary
The MACD Signal Bars indicator offers an easy-to-read visual representation of bullish and bearish trends.
It is ideal for short-term trading, scalping, and day trading, helping traders quickly identify buy and sell signals.
Customizable settings allow users to adjust sensitivity and signal frequency.
The green and red histogram bars simplify trend analysis, reduce decision-making time, and improve trade timing.
Combining it with other trend or momentum tools can enhance accuracy and risk management.
