The MACD and Volume Forex indicator for Metatrader 4 follows the prevailing trend with the help of gray colored histogram bars and 3 additional signal lines.
It also displays volume on the chart.
The MACD and Volume can be used in various ways. See an example below.
Buy & Sell Trade Example
- Open a buy trade as soon as the gray histogram bars are aligned above the 0.00 level and the red signal line crosses back above the blue signal line.
- Open a sell trade as soon as the gray histogram bars are aligned below the 0.00 level and the red signal line crosses back below the blue signal line.
This trading indicator can be used for both trade entry and exit, or as an additional signal indicator that works together with your own favorite trading strategy or system.
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 and volumes.mq4” indicator for MT4
Indicator Chart (EUR/USD M30)
The picture below shows the MACD and Volume 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 and Volumes 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 and Volume + Rainbow Trend Forex Multi-Timeframe Strategy
This strategy combines the MACD and Volumes Forex Indicator for MT4 with the Rainbow Trend Metatrader 4 Forex Indicator.
The MACD and Volume indicator generates a buy signal when the gray histogram is above zero and a sell signal when it is below zero.
The Rainbow Trend indicator confirms trend direction: for a buy, the red lines must be below the yellow line and the green lines above the yellow line.
For a sell, the red lines must be above the yellow line and green lines below.
This strategy works well on timeframes from M1 to H4, making it suitable for intraday and swing trading.
Why this strategy works
This strategy works by combining momentum, volume, and trend alignment.
The MACD and Volume indicator captures momentum shifts, while the Rainbow Trend confirms the trend across multiple timeframes.
Entering trades only when both indicators align increases the probability of following the main trend and reduces the likelihood of false signals.
Buy Entry Rules
- Wait for the MACD and Volumes histogram to rise above zero.
- Confirm that the Rainbow Trend shows red lines below the yellow line and green lines above the yellow line.
- 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.
- Take profit in stages: close half the position at the nearest minor resistance and the rest when the Rainbow Trend alignment changes or momentum weakens.
- Exit early if the MACD histogram falls below zero or the Rainbow Trend alignment reverses.
Sell Entry Rules
- Wait for the MACD and Volumes histogram to fall below zero.
- Confirm that the Rainbow Trend shows red lines above the yellow line and green lines below the yellow line.
- 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.
- Take profit in stages: close half the position at the nearest minor support and the rest when the Rainbow Trend alignment changes or momentum weakens.
- Exit early if the MACD histogram rises above zero or the Rainbow Trend alignment changes.
Advantages
- Works on multiple timeframes from M1 to H4.
- Combines momentum, volume, and trend for higher-probability trades.
- Clear visual confirmation reduces false entries.
- Adaptable for both intraday and swing trading.
- Structured stop loss and staged take profit allow better risk and reward management.
Drawbacks
- Signals can be delayed in very fast-moving markets, causing late entries.
- Sideways markets may produce conflicting signals, increasing the risk of small losses.
- Staged take profit may not fully capture trends if the trend reverses unexpectedly.
Case Study 1 – GBP/USD H1
During the London session, GBP/USD showed a gray histogram above zero on the MACD and Volumes indicator.
The Rainbow Trend confirmed a bullish alignment with red lines below the yellow line and green lines above.
A buy trade was entered at 1.2610 with a stop loss at 1.2595.
Half of the position was closed at the nearest resistance at 1.2630, and the remaining half was closed when the Rainbow Trend alignment shifted, resulting in a total gain of 30 pips.
Case Study 2 – EUR/JPY M15
During the Asian session, EUR/JPY showed a gray histogram below zero on the MACD and Volumes indicator, with a bearish Rainbow Trend alignment.
A sell trade was entered at 144.50 with a stop loss at 144.70.
Half of the position was closed at minor support at 144.30, and the remaining half when the Rainbow Trend alignment changed, resulting in a total gain of 30 pips.
Strategy Tips
- Use M1 for scalping, M15–H1 for intraday, and H4 for swing trading.
- Focus on liquid pairs like GBP/USD, EUR/JPY, EUR/USD, and AUD/USD for smoother price action.
- Combine with support and resistance levels to refine entries and staged exits.
- Adjust stop loss based on volatility and timeframe.
- Use a staged take profit to secure profits while allowing the remainder of the trade to run.
- Consider using additional filters like pivot points or moving averages to reduce false signals in low-volatility markets.
This multi-timeframe strategy combines momentum, volume, and trend confirmation with staged take profit to provide structured trade entries and exits for intraday and swing traders, emphasizing disciplined risk management and careful market observation.
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Download the “macd and volumes.mq4” indicator for Metatrader 4
