About the MACD Support & Resistance Forex Indicator
The MACD Support & Resistance Indicator for MetaTrader 4 is designed to help traders quickly identify key price levels on the chart.
It converts market momentum into visual support and resistance lines, making it easier to spot entry and exit points.
The indicator plots purple lines to mark resistance levels and red lines to mark support levels directly on the main chart.
These lines adjust dynamically as price action evolves, providing a clear view of potential reversal or breakout zones.
By combining MACD momentum with support and resistance analysis, this indicator helps traders make more informed decisions, especially for intraday and swing trading.
It works well on all major currency pairs and is suitable for both scalping and longer-term trades.
Free Download
Download the “Macd_Support_and_Resistance.mq4” indicator for MT4
Key Features
- Dynamic support and resistance lines based on MACD signals
- Purple lines indicate resistance
- Red lines indicate support
- Visible directly on the main MT4 chart
- Helps identify reversals, breakouts, and consolidation zones
- Suitable for multiple timeframes and currency pairs
- Ideal for scalping, intraday, and swing trading strategies
Indicator Chart
The chart below shows the MACD Support & Resistance Indicator in action.
Purple lines act as resistance, where the price may reverse downward.
Red lines act as support, where the price may bounce upward.
These levels provide clear zones to plan entries and exits.
Guide to Trade with MACD Support & Resistance Indicator
Buy Rules
- Wait for the price to approach a red support line
- Confirm bullish momentum using MACD or price action
- Enter a buy trade if the support holds and the price shows a bounce
Sell Rules
- Wait for the price to approach a purple resistance line
- Confirm bearish momentum using MACD or price action
- Enter a sell trade if the resistance holds and the price shows rejection
Stop Loss
- Place a stop loss just below the support line for buys
- Place a stop loss just above the resistance line for sells
- For shorter timeframes, tighten stops to reduce risk
Take Profit
- Target the next support level for sell trades or the next resistance for buy trades
- Close trades when the price nears a strong opposite level
- Scalpers can aim for smaller moves within the support/resistance range
Practical Tips
- Use multiple timeframes to confirm support and resistance levels
- Combine with MACD momentum for more reliable entries
- Focus on high-liquidity pairs for sharper reactions at levels
- Consider session highs and lows as additional support/resistance zones
Day Trading Strategy: MACD Support & Resistance + Advanced Get Oscillator (MT4)
This day trading strategy combines the MACD Support & Resistance and the Advanced Get Oscillator on MetaTrader 4 (MT4) to identify high-probability buy and sell opportunities.
The MACD Support & Resistance indicator provides dynamic support and resistance levels, while the Advanced Get Oscillator offers momentum insights.
This strategy is suitable for day trading on M15 and H1 timeframes and works well for pairs like AUD/USD, USD/JPY, and EUR/JPY.
Buy Entry Rules
- Wait for the price to approach the red support line (from the MACD Support & Resistance indicator).
- Ensure the Advanced Get Oscillator histogram is above 0, indicating bullish momentum.
- Enter a buy position when the price bounces off the support line and the histogram remains positive.
- Set a stop loss just below the support line or a fixed number of pips, depending on your risk tolerance.
- Set a take profit target at the purple resistance line or use a risk-to-reward ratio of at least 1:2.
Sell Entry Rules
- Wait for the price to approach the purple resistance line (from the MACD Support & Resistance indicator).
- Ensure the Advanced Get Oscillator histogram is below 0, indicating bearish momentum.
- Enter a sell position when the price reverses from the resistance line and the histogram remains negative.
- Set a stop loss just above the resistance line or a fixed number of pips.
- Set a take profit target at the red support line or use a risk-to-reward ratio of at least 1:2.
Advantages
- Combines dynamic support and resistance levels with momentum insights 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 sufficient liquidity.
Drawbacks
- Not suitable for low-liquidity pairs due to potential slippage and wider spreads.
- Performance can vary depending on market session and time of day.
- Indicators may lag slightly, causing late entries in fast-moving conditions.
- Overtrading is possible if signals are taken too frequently without filtering.
Case Study 1: AUD/USD M15 Buy
On the AUD/USD M15 chart, the price approached the red support line at 0.6750.
The Advanced Get Oscillator histogram was above 0, indicating bullish momentum.
A buy position was entered at 0.6753 when the price bounced off the support line.
The stop loss was set at 0.6740 (-13 pips), and the take profit target was 0.6773 (+20 pips).
The trade reached the take profit level within the session, resulting in a +20 pip gain.
Case Study 2: EUR/JPY H1 Sell
During the Tokyo session on EUR/JPY H1, the price approached the purple resistance line at 144.50.
The Advanced Get Oscillator histogram was below 0, indicating bearish momentum.
A sell position was entered at 144.47 when the price reversed from the resistance line.
The stop loss was set at 144.65 (+18 pips), and the take profit target was 144.10 (-37 pips).
The price declined steadily and reached the take profit level within the session, resulting in a +37 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/USD, EUR/JPY, and USD/JPY.
- Apply proper risk management with stop losses and take profit targets.
- Combine with basic support and resistance analysis to improve trade accuracy.
Download Now
Download the “Macd_Support_and_Resistance.mq4” indicator for Metatrader 4
FAQ
What do the colored lines represent?
Purple lines indicate resistance levels where price may reverse downward.
Red lines indicate support levels where price may bounce upward.
Can I use this indicator with other MACD tools?
Yes. It pairs well with MACD momentum indicators, candlestick patterns, and trend analysis to improve trade accuracy.
Summary
The MACD Support & Resistance Indicator for MT4 provides dynamic support and resistance levels directly on the chart.
Purple lines mark resistance, and red lines mark support, helping traders spot potential reversal and breakout zones.
By combining these levels with MACD momentum, price action, and proper risk management, traders can make more informed entries and exits.
This tool is suitable for scalping, intraday, and swing trading, offering a visual approach to key price zones and market structure.
