About the Indicator
The COG MACD V2 for MetaTrader 4 combines the Center of Gravity (COG) indicator with the traditional Moving Average Convergence Divergence (MACD), offering a refined approach to trend analysis.
This integration provides traders with enhanced clarity in identifying trend directions and potential reversals.
Key Features
- Integrates COG with MACD for improved trend detection.
- Displays a sloping channel with colored histogram bars oscillating above and below the zero level.
- Offers visual cues for trend strength and potential entry points.
- Compatible with all major currency pairs and various timeframes.
- Lightweight and efficient, ensuring minimal impact on platform performance.
Buy & sell signal
- A buy signal occurs whenever the channel is sloping up and the trend bars cross the 0.00 level upwards.
- A sell signal occurs whenever the channel is sloping downwards and the trend bars cross the 0.00 level downwards.
Free Download
Download the “cogmacd-v2-indicator.mq4” indicator for MT4
Indicator Example Chart (EUR/USD H1)
Below is an example of the COG MACD V2 indicator applied to an H1 EUR/USD chart, showcasing its ability to highlight trend shifts and potential entry points.
How to Trade Using This Indicator
Entry Signals
- Buy Signal: Enter a buy trade when the histogram bars cross above the zero level, indicating bullish momentum.
- Sell Signal: Enter a sell trade when the histogram bars cross below the zero level, indicating bearish momentum.
Stop Loss and Take Profit Guidelines
- Stop Loss: Place a stop loss below the recent swing low for buy trades and above the recent swing high for sell trades.
- Take Profit: Aim for a risk-reward ratio of at least 1:2, adjusting based on market conditions and volatility.
Trade Management Tips
- Monitor the histogram’s slope for signs of trend continuation or reversal.
- Use additional indicators or price action analysis to confirm signals.
- Adjust position sizes and risk management strategies based on market volatility.
Advantages
- Offers a comprehensive view of market trends by integrating COG and MACD.
- Helps in filtering out noise and focusing on significant market movements.
Download Now
Download the “cogmacd-v2-indicator.mq4” indicator for Metatrader 4
COG MACD V2 & Forex Trend Reversal Signals MT4 Strategy
This strategy pairs the COG MACD V2 Forex Indicator, which provides smoothed trend and momentum signals via center-of-gravity enhanced MACD, with the Forex Trend Reversal Signals MT4 Indicator, which marks potential reversal points with clean entry signals.
The blend of trend alignment and reversal timing gives traders a powerful method to capture high-probability momentum-based reversals.
What is this strategy about?
The main idea: only enter trades when the underlying momentum (COG MACD V2) is aligning, then wait for a precise reversal entry from the Forex Trend Reversal Signals.
This helps ensure trades are taken in the direction of the major momentum and reduces false reversal entries.
Buy and Sell Rules
Buy Setup
- COG MACD V2 histogram turns above the zero level, indicating bullish momentum.
- Wait for the Forex Trend Reversal Signals indicator to appear with a bullish blue candlestick.
- Enter buy at the close of the confirming candle.
- Stop loss: 10–25 pips below the recent swing low or a logical support line.
- Take profit: Aim for 1:2 or 1:3 R:R, or target next key resistance; consider trailing stop after partial profit.
Sell Setup
- COG MACD V2 histogram turns below the zero level, indicating bearish momentum.
- Forex Trend Reversal Signals shows a bearish red candlestick.
- Enter sell at the close of the confirming candle.
- Stop loss: 10–25 pips above the recent swing high or resistance line.
- Take profit: Target 1:2 or 1:3 risk/reward; consider partial exit and then trail.
Trader Case Studies
Here are two unique examples of traders using this strategy with different outcomes across markets and timeframes.
Alba D – Chile
Alba, an intraday trader, used this setup on M15 charts with EUR/USD and USD/CHF pairs for two weeks. She patiently waited for histograms to turn bullish and then followed up with reversal arrows. Her disciplined entries and exits netted her +175 pips. She credited the MACD momentum filter for avoiding weak reversals during choppy London session starts.
Jin S – South Korea
Jin, a swing trader, favored the H1 timeframe on GBP/JPY and AUD/JPY pairs for over a month. By aligning MACD bullish swings with reversal arrows at channel edges, he scored +385 pips. He mentioned the strategy’s clarity helped him manage trades confidently even with full-time commitments.
Disclaimer: These cases are educational examples only. Trading outcomes depend on individual skill, risk management, and market conditions.
Advantages
- Combines trend momentum (MACD) with precise reversal signals for higher confidence trades.
- Effective across multiple timeframes: from scalping (M5–M15) to swing (H1–H4).
Drawbacks & Considerations
- False reversals may occur during rapid news surges; use a session and news filter.
- Small-timeframe trades require strict discipline and low-latency execution.
- Rely on sound risk management—never override your stop for the signal.
Strategy Conclusion & Tips
This COG MACD V2 + Trend Reversal signal strategy offers a robust way to trade momentum-aligned reversals.
Start by backtesting on your preferred pair and timeframe, maintain a trading log to track outcomes, and adjust stop/take-profit levels based on volatility.
Avoid trading through major releases if you’re not prepared for slippage.
With consistency, this method can become a reliable framework for both scalping and swing trading.
Indicator Specifications
| Platform | MetaTrader 4 (MT4) |
|---|---|
| Indicator Type | Oscillator (Combines COG and MACD) |
| Timeframes | All timeframes (M1 to D1) |
| Currency Pairs | All major and minor pairs |
| Inputs |
|
| Repainting | No |
FAQ
Does the COG MACD V2 indicator repaint?
No, the COG MACD V2 indicator does not repaint. Once a signal is generated, it remains on the chart, providing reliable analysis.
Can I use this indicator for scalping?
Yes, the COG MACD V2 indicator is suitable for scalping, especially when combined with other tools like the Forex Trend Reversal Signals indicator for precise entry points.
Is this indicator compatible with all currency pairs?
Yes, the COG MACD V2 indicator works with all major and minor currency pairs. However, it’s essential to test it on a demo account to understand its behavior with different pairs.
Final Words
The COG MACD V2 Forex Indicator for MT4 offers traders a powerful tool for trend analysis by combining the strengths of the Center of Gravity and MACD indicators.
By providing clear entry signals and enhancing trend clarity, it can be a valuable addition to any trading strategy.
Remember to practice on a demo account and incorporate proper risk management techniques to maximize its effectiveness.
