About the Indicator
The DEMA MACD Zones & Alerts 2 Forex Indicator for MT4 is a powerful trend-following tool designed to give traders clear visual cues for market direction.
It combines double exponential moving averages (DEMA) with MACD calculations to create colored zones on your chart, helping you spot bullish and bearish momentum.
Alerts are built-in to notify you of potential trade setups, making it easier to act promptly.
Perfect for scalping, day trading, or swing trading, this indicator simplifies decision-making while increasing your chances of successful trades.
Trade Example
- Open a buy trade as soon as the green colored Dema MACD zone gets printed on the chart.
- Open a sell trade as soon as the red colored Dema MACD zone gets printed on the chart.
- Reverse the open position as soon as the zone changes its color.
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Download the “dema macd zones amp alerts 2.ex4” indicator for MT4
Key Features
- Colored zones indicate bullish (green) or bearish (red) market momentum.
- Built-in pop-up and sound alerts for trade opportunities.
- Combines DEMA with MACD for more accurate trend detection.
- Works on all MT4 timeframes and currency pairs.
- Helps identify high-probability entry and exit points.
- Free to download and easy to integrate into your MT4 platform.
Indicator Example Chart (EUR/USD H1)
The chart below shows how the indicator forms green and red zones to reflect bullish or bearish momentum. Traders can enter buy trades during green zones and sell trades during red zones, while using alerts to confirm timely entries.
How To Trade Using This Indicator
- Buy Signals: Enter a buy trade when a green zone appears on the chart, indicating bullish momentum.
- Sell Signals: Enter a sell trade when a red zone appears on the chart, indicating bearish momentum.
- Stop Loss: Place a stop loss just below the recent swing low for buys or above the swing high for sells.
- Take Profit: Target the next support/resistance zone or use a fixed pip range.
- Strategy Enhancement: Combine with RSI, MACD histogram, or support/resistance levels to validate signals and increase trade accuracy.
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Download the “dema macd zones amp alerts 2.ex4” indicator for Metatrader 4
DEMA-MACD Zones & 4-Moving Averages Forex Strategy
Overview
This strategy combines the DEMA MACD Zones & Alerts 2 indicator with the 4 Moving Averages Buy/Sell Signals indicator to create a powerful trend-following system.
The DEMA MACD Zones highlight buy and sell zones with clear color signals, while the 4 Moving Averages indicator confirms trend strength through moving average alignment.
Buy Entry Conditions
- DEMA MACD Zones & Alerts 2 indicator displays a green zone signaling bullish momentum.
- The 4 Moving Averages indicator is green, above zero.
- Enter a buy trade at the close of the confirming candle.
- Place a stop loss below the most recent swing low or key support area.
- Exit when the DEMA MACD Zones shift to red.
Sell Entry Conditions
- DEMA MACD Zones & Alerts 2 indicator displays a red zone signaling bearish momentum.
- The 4 Moving Averages indicator is pink.
- Enter a sell trade at the close of the confirming candle.
- Place a stop loss above the most recent swing high or key resistance area.
- Exit when the DEMA MACD Zones shift to green.
Trader Case Studies
Here are examples of traders from different countries who successfully used this strategy on various currency pairs and timeframes.
Judith M – Spain
Judith, a short-term trader from Barcelona, traded the EUR/USD and GBP/USD pairs over 30 days. Following the strategy rules and practicing sound risk management, she netted +332 pips.
Fahad K – United Arab Emirates
Fahad, a full-time trader from Dubai, applied this method on AUD/USD and USD/JPY pairs for 35 days. His disciplined trading resulted in a gain of +412 pips.
Sara T – Australia
Sara, a day trader from Sydney, used this strategy on the NZD/USD, USD/CAD, and EUR/GBP pairs for 8 weeks and achieved +685 pips in profits.
Disclaimer: These case studies are for educational purposes only. Trading results will vary based on market conditions, risk management, and individual discipline.
Advantages
- Combines momentum and trend confirmation for more reliable trade signals.
- Clear, easy-to-read visual signals reduce confusion.
- Works well across various timeframes and currency pairs.
- Helps filter false signals by requiring confirmation from two indicators.
Drawbacks
- Limited signals during sideways or low volatility markets.
Strategy Conclusion and Tips
This approach uses the DEMA MACD Zones to gauge momentum and the 4 Moving Averages to confirm trend direction.
This dual confirmation improves the odds of successful trades. Consistency and discipline are key to long-term success with this strategy.
Indicator Specifications
Specification | Details |
---|---|
Platform | MetaTrader 4 (MT4) |
Type | Trend & Momentum Indicator |
Timeframes | All MT4 Timeframes |
Currency Pairs | Major, Minor, and Exotic Pairs |
Inputs | DEMA Periods, MACD settings, Alert On/Off, Zone Colors |
Signals | Colored bullish/bearish zones + alerts |
Alerts | Pop-up, Sound, Email (configurable) |
Frequently Asked Questions (FAQ)
1. How do I interpret the colored zones?
Green zones indicate bullish momentum, while red zones indicate bearish momentum. Use the zone direction to guide buy or sell trades.
2. Can I use this indicator for both entry and exit signals?
Yes, enter trades when a new zone appears and consider exiting when the zone color changes or momentum weakens.
3. Which timeframes are most effective?
For scalping, M1-M15 are suitable. For day trading, M15-H1 works well. Higher timeframes like H4 or D1 are more reliable for swing trading.
4. Does this indicator repaint?
No, the zones remain fixed once formed, providing consistent and reliable signals.
5. How can I combine this indicator with other tools?
Combine with RSI, MACD histogram, moving averages, or support/resistance levels to increase the probability of successful trades. Always backtest strategies before going live.
Final Words
The DEMA MACD Zones & Alerts 2 Forex Indicator for MT4 is a versatile and reliable tool for identifying trends and momentum shifts in the Forex market.
Using its colored zones along with alerts allows traders to spot high-probability trade setups efficiently.
For best results, combine this indicator with other trend or momentum tools, manage your risk carefully, and focus on multi-timeframe confirmation.
By applying these techniques, traders can enhance consistency, improve trade accuracy, and capture more pips across different currency pairs.