The MACD 2 Lines Forex indicator for Metatrader 4 is an enhanced version of the traditional MACD technical indicator.
MACD stands for Moving Average Convergence/Divergence.
The indicator appears in a sub-MT4 window in the form of colored green and red bars and two colored signal lines.
Buying and selling with the MACD 2 Lines indicator is simple, and it can be used in multiple ways.
Buy & Sell Trade Example
- Open a buy trade when the green MACD histogram bars appear on the chart (bull trend).
- Open a sell trade when the red MACD histogram bars appear on the chart (bear trend).
For scalping and day trading, the indicator performs best during the London and New York trading sessions.
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 2Line.mq4” indicator for MT4
Indicator Chart (EUR/USD M5)
The picture below shows the MACD 2 Lines Forex 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 2 Lines Forex 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.
MACD 2 Lines + AMA Signals Forex Day Trading Strategy
This day trading strategy combines the MACD 2 Lines Forex Indicator for MT4 with the AMA Signals Metatrader 4 Forex Indicator.
The MACD 2 Lines indicator displays green histogram bars for buy signals and red histogram bars for sell signals.
The AMA Signals indicator confirms the trend using blue dots for bullish trends and brown dots for bearish trends.
Using these indicators together provides a disciplined approach to intraday trading, capturing momentum while trading in the direction of the trend.
Why this strategy works
This strategy works by combining trend confirmation with momentum signals.
The AMA Signals indicator identifies the prevailing trend, while the MACD 2 Lines provides precise entries.
Aligning both indicators ensures that trades are taken in the direction of the trend, increasing the probability of successful intraday trades.
Buy Entry Rules
- Wait for the MACD 2 Lines histogram to turn green, signaling a buy.
- Confirm that the AMA Signals indicator shows blue dots, indicating a bullish trend.
- Enter a buy trade at the open of the next candle after both conditions are met.
- Place the stop loss below the most recent swing low or support level.
- Set the take profit near the next resistance level or use a 1:2 risk-reward ratio.
- Close the trade early if the MACD histogram turns red or the AMA dots turn brown.
Sell Entry Rules
- Wait for the MACD 2 Lines histogram to turn red, signaling a sell.
- Confirm that the AMA Signals indicator shows brown dots, indicating a bearish trend.
- Enter a sell trade at the open of the next candle after both conditions are met.
- Place the stop loss above the most recent swing high or resistance level.
- Set the take profit near the next support level or use a 1:2 risk-reward ratio.
- Close the trade early if the MACD histogram turns green or the AMA dots turn blue.
Advantages
- Combines trend and momentum for higher probability trades.
- Clear visual signals make it easy to identify entry and exit points.
- Works well on multiple timeframes, especially M15 and H1 for intraday trading.
- Helps reduce false signals during minor retracements.
- Provides structured stop loss and take profit guidelines.
Drawbacks
- Signals may lag during sudden trend reversals.
- Requires simultaneous monitoring of both indicators to ensure proper entries.
- The strategy may give multiple small losses during choppy market conditions before a trend develops.
Case Study 1 – EUR/CHF H1
During the London session, EUR/CHF displayed green MACD histogram bars while AMA Signals showed blue dots.
A buy trade was entered at 1.0740 with a stop loss at 1.0728 and a take profit at 1.0760.
The trade reached the target in approximately 90 minutes, yielding a 20-pip gain.
Case Study 2 – AUD/CAD H1
During the New York session, AUD/CAD showed red MACD histogram bars while AMA Signals displayed brown dots.
A sell trade was entered at 0.9125 with a stop loss at 0.9140 and a take profit at 0.9105.
The trade reached the take profit in two hours, resulting in a 20-pip gain.
Combining both indicators helped avoid countertrend trades.
Strategy Tips
- Use M15 or H1 charts for intraday trading.
- Focus on liquid pairs such as EUR/CHF, AUD/CAD, EUR/USD, and GBP/USD for tighter spreads.
- Avoid trading during major news releases to minimize sudden volatility.
- Strictly follow both indicators for entries and exits to maintain discipline.
This day trading strategy merges trend confirmation with momentum signals, providing disciplined intraday trading opportunities with clear entry, exit, and risk management rules for consistent results.
