The MACD with EMA Forex Signal indicator for Metatrader 4 is a directional trend oscillator that delivers high-probability trading signals.
The indicator appears in a sub-MT4 window as a colored trend histogram that’s easy to trade.
The indicator can be used in various ways. I will present you with an example below:
Buy & Sell Trade Example
- Open a buy trade as soon as the first green colored trend bar appears above the 0.00 level.
- Open a sell trade as soon as the first red colored trend bar appears below the 0.00 level.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “Macd-with-EMA.mq4” indicator for MT4
Indicator Chart (EUR/USD H1)
The picture below shows the MACD with EMA Forex Signal mt4 indicator in action on the trading chart.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method to trade with the MACD with EMA Forex Signal indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: MACD
Does the indicator repaint? No.
Day Trading Strategy: MACD with EMA Forex Signal Indicator & Sigma Bands (MT4)
This day trading strategy combines the MACD with EMA Forex Signal Indicator and the Sigma Bands Indicator on MetaTrader 4 (MT4) to identify high-probability buy and sell opportunities.
The MACD with EMA Forex Signal Indicator provides momentum insights, while the Sigma Bands Indicator offers trend-following signals.
This strategy is suitable for day trading on M15 and H1 timeframes and works well for pairs like AUD/JPY, EUR/GBP, and NZD/USD.
Buy Entry Rules
- Wait for the MACD with EMA Forex Signal Indicator to display a green histogram, indicating bullish momentum.
- Ensure the price is above the red middle Sigma Band and the bands are sloping upwards, confirming an uptrend.
- Enter a buy position when both conditions are met.
- Set a stop loss below the recent swing low or a fixed number of pips, depending on your risk tolerance.
- Set a take profit target at the next significant resistance level or use a risk-to-reward ratio of at least 1:2.
Sell Entry Rules
- Wait for the MACD with EMA Forex Signal Indicator to display a red histogram, indicating bearish momentum.
- Ensure the price is below the red middle Sigma Band and the bands are sloping downwards, confirming a downtrend.
- Enter a sell position when both conditions are met.
- Set a stop loss above the recent swing high or a fixed number of pips.
- Set a take profit target at the next significant support level or use a risk-to-reward ratio of at least 1:2.
Advantages
- Combines momentum and trend-following indicators for higher probability trades.
- Reduces market noise, allowing for clearer trade signals.
- Works effectively on M15 and H1 timeframes for day trading.
- Helps in identifying trend reversals and continuations with minimal lag.
- Flexible for different currency pairs with good liquidity.
Drawbacks
- Signals may be less reliable during low-volatility periods or consolidation phases.
- Requires constant chart observation to avoid missed entries or exits.
- Rapidly changing trends can produce false signals, leading to small losses.
Case Study 1: AUD/JPY M15 Buy
On the AUD/JPY M15 chart, the MACD with EMA Forex Signal Indicator displayed a green histogram, indicating bullish momentum.
The price was above the red middle Sigma Band, and the bands were sloping upwards, confirming an uptrend.
A buy position was entered at 88.50.
The stop loss was set at 88.30 (-20 pips), and the take profit target was 88.70 (+20 pips).
The price moved upward and hit the take profit level within the session, resulting in a +20 pips gain.
Case Study 2: NZD/USD H1 Sell
During the New York session on NZD/USD H1, the MACD with EMA Forex Signal Indicator displayed a red histogram, indicating bearish momentum.
The price was below the red middle Sigma Band, and the bands were sloping downwards, confirming a downtrend.
A sell position was entered at 0.6350.
The stop loss was set at 0.6365 (+15 pips), and the take profit target was 0.6325 (-25 pips).
The price declined steadily and reached the take profit level within the session, resulting in a +25 pips profit.
Strategy Tips
- Use M15 and H1 charts for day trading to capture intraday trends.
- Focus on major and liquid currency pairs like AUD/JPY, EUR/GBP, and NZD/USD.
- Apply proper risk management with stop losses and take profit targets.
- Combine with basic support and resistance levels to improve trade accuracy.
By combining the MACD with EMA Forex Signal Indicator and the Sigma Bands Indicator, traders can develop a reliable MT4 day trading strategy that leverages both momentum and trend-following indicators for high-probability trades.
