The iMACD Histogram indicator for Metatrader 4 shows you exactly where to buy and sell currency pairs based on MACD.
IMACD appears underneath the main MT4 trading window in the form of a dual colored buy/sell signals histogram.
- A blue iMACD histogram indicates that the trend is bullish.
- A red iMACD histogram indicates that the trend is bearish.
The iMACD Forex indicator can be deployed on any time frame on any currency pair and MT4 symbol.
It can be used as a stand-alone trading indicator for day trading and scalping purposes (M1, M5, M15) or together with other technical indicators or price action for better trading performance on the larger time frames (M30, H1, H4, D1).
Feel free to experiment with the different iMACD indicator’s input settings to suit your needs and preferences.
Free Download
Download the “iMACD_Advanced_Histo_v1.0.ex4” MT4 indicator
Indicator Chart (AUD/CAD M15)
The AUD/CAD 15-Minute chart below displays the iMACD Histogram Buy/Sell Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the iMACD Histogram Buy/Sell MT4 indicator are easy to interpret and goes as follows:
Buy Signal: Buy the pair when the iMACD Histogram Buy/Sell indicator draws its first blue bar on the activity chart. The trend is now bullish.
Place a stop loss 3 pips below support or use your own preferred SL method.
Take profit when the IMACD indicator reverses its trend direction (at the first red bar) or go for a fixed profit target. For example, 30 pips on the M15 trading chart.
Sell Signal: Sell the pair when the iMACD Histogram Buy/Sell indicator draws its first red bar on the activity chart. The trend is now bearish.
Place a stop loss 3 pips above resistance or use your own preferred SL method.
Take profit when the IMACD indicator reverses its trend direction (at the first blue bar) or go for a fixed profit target. For example, 15 pips on the M1 scalping chart.
iMACD Histogram + JJN Big Trend Forex Strategy for MT4
This forex strategy combines the iMACD Histogram Buy/Sell Forex MT4 Indicator with the JJN Big Trend Forex Indicator for MT4.
The iMACD Histogram shows short-term momentum with blue bars for buy signals and red bars for sell signals.
The JJN Big Trend indicator identifies the overall trend for multiple currency pairs and displays it in a mini dashboard.
A buy setup is confirmed when at least four out of five dots are green, while a sell setup is confirmed when four or more dots turn red.
This strategy works well on M15 and H1 charts and is suitable for traders looking to combine trend-following with short-term momentum signals.
Buy Entry Rules
- The iMACD Histogram turns blue, signaling bullish momentum.
- The JJN Big Trend dashboard shows at least four green dots, confirming strong trend alignment.
- Enter a buy trade at the close of the confirming candle.
- Place stop loss below the recent swing low, usually 10–20 pips on M15 or 25–35 pips on H1.
- Set take profit at 20–30 pips on M15 or 50–60 pips on H1, or exit when the histogram turns red or the dashboard shows fewer than four green dots.
Sell Entry Rules
- The iMACD Histogram turns red, signaling bearish momentum.
- The JJN Big Trend dashboard shows at least four red dots, confirming a strong downtrend.
- Enter a sell trade at the close of the confirming candle.
- Place stop loss above the recent swing high, typically 10–20 pips on M15 or 25–35 pips on H1.
- Take profit at 20–30 pips on M15 or 50–60 pips on H1, or exit when the histogram turns blue or fewer than four dots remain red.
Advantages
- Combines momentum with multi-pair trend confirmation for higher probability trades.
- The mini dashboard allows easy monitoring of trend strength across multiple pairs.
- Visual signals are straightforward and quick to interpret, suitable for both beginners and experienced traders.
- Works well on M15 and H1 charts for intraday trading with clear entries and exits.
- Helps avoid trading against strong trends, reducing the likelihood of false entries.
Drawbacks
- Requires monitoring multiple timeframes for proper risk management.
- The trend dashboard can lag slightly on fast reversals, potentially missing early entry opportunities.
- Less effective on pairs with low liquidity or erratic movements, as histogram signals can be choppy.
Case Study 1: EURUSD M15 Trade
During the London session, the iMACD Histogram turned blue while the JJN Big Trend dashboard showed four green dots for EURUSD.
A buy entry at 1.1035 with a 22-pip stop loss moved to 1.1080, capturing 45 pips before the histogram turned red and the dashboard showed fewer than four green dots, signaling an exit.
Case Study 2: GBPUSD H1 Trade
In the New York session, the iMACD Histogram turned red, and the JJN Big Trend dashboard displayed four red dots.
A sell entry at 1.2480 with a 45-pip stop loss dropped to 1.2400, securing 80 pips before the histogram changed to blue and the trend dashboard showed fewer than four red dots.
Strategy Tips
- Check the trend alignment on multiple pairs using the dashboard to avoid trading against strong moves.
- Adjust stop loss and take profit levels based on pair volatility and session activity.
- Be cautious during high-impact news events that can cause sudden reversals.
- Consider partial profit-taking if the histogram shows early signs of weakening while the dashboard remains strong.
- Keep a trading journal to monitor which pairs perform best under this combined strategy.
Download Now
Download the “iMACD_Advanced_Histo_v1.0.ex4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (fast period, slow period, signal period, applied price, percentage level up, percentage level down) Width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, Daily, Weekly, Monthly
Type: MACD
