The MACD Crossover Signal indicator for Metatrader 4 draws a buy or sell arrow on the chart whenever the histogram bars turn back above or below the 0.00 level.
In essence, it’s a simplified version of the traditional MACD indicator.
Buy & Sell Trade Example
- A green colored arrow is a buy signal.
- A red colored arrow is a sell signal.
The indicator can be used as a standalone trading tool for both trade entry and exit.
It can also be used as an additional buy/sell signals indicator that works together with an existing trading strategy or system of your preference.
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 crossover signal.mq4” indicator for MT4
Indicator Chart (EUR/USD M30)
The picture below shows the MACD Crossover Signal 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 Crossover Signal 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 Crossover Signal + Trend Power Forex Day Trading Strategy
The MACD Crossover Signal + Trend Power MT4 strategy is designed for intraday traders who prefer structured setups with clear visual confirmations.
It combines the MACD Crossover Signal Indicator, which plots green arrows for buy signals and red arrows for sell signals, with the Trend Power Indicator, which uses a blue line for bullish trends and a red line for bearish trends.
When both align, traders can catch strong intraday momentum moves while filtering out noise.
This strategy works best on the M15 and H1 timeframes, ideal for London and New York sessions.
Buy Entry Rules
- Wait for the MACD Crossover Signal indicator to plot a green arrow, signaling a potential buy entry.
- Confirm that the Trend Power indicator line is blue, showing bullish market strength.
- Enter the buy trade at or slightly above the high of the candle where the signal appears.
- Set the stop loss a few pips below the recent swing low or below the signal candle’s low.
- Set take profit at 1.5 to 2 times your stop loss distance, or exit when a red arrow appears or the Trend Power line turns red.
Sell Entry Rules
- Wait for the MACD Crossover Signal indicator to print a red arrow, signaling a potential sell entry.
- Confirm that the Trend Power indicator line is red, indicating a bearish trend.
- Enter the sell trade at or slightly below the low of the signal candle.
- Place the stop loss a few pips above the recent swing high or above the signal candle’s high.
- Set take profit at 1.5 to 2 times your stop loss distance or exit when a green arrow appears or the Trend Power line turns blue.
Advantages
- Simple and visually clear trading signals suitable for all experience levels.
- Combines trend confirmation and momentum timing for better accuracy.
- Effective during volatile trading sessions like London and New York overlaps.
- Easy to manage trades using clear stop loss and exit signals.
Drawbacks
- Less effective during sideways or low-volatility markets.
- Trend confirmation can sometimes lag, resulting in later entries.
- Requires constant chart monitoring during active trading hours.
- Performance may vary across currency pairs and session conditions.
Case Study 1: EURUSD M15 Buy Example
At the start of the London session, the Trend Power indicator turned blue, signaling a bullish environment.
A few candles later, the MACD Crossover Signal plotted a green arrow at 1.0860.
A buy trade was entered at 1.0862 with a stop loss at 1.0842 (20 pips) and a take profit at 1.0892 (30 pips).
Within an hour, the price reached the target, netting a +30 pip gain.
The clear alignment between both indicators provided strong confirmation and confidence in the trade.
Case Study 2: GBPUSD H1 Sell Example
During the New York session, the Trend Power line switched to red, showing bearish strength.
Shortly after, the MACD Crossover Signal indicator displayed a red arrow at 1.2625.
A sell trade was placed at 1.2620 with a stop loss at 1.2640 (20 pips) and take profit at 1.2590 (30 pips).
Price moved steadily downward, hitting the take profit target for a clean +30 pip win.
The combination of directional trend and momentum signal produced a high-quality entry.
Strategy Tips
- Focus on major currency pairs like EURUSD, GBPUSD, and USDJPY for consistent liquidity.
- Avoid trading before major news announcements to prevent sudden volatility spikes.
- Use this strategy during active market sessions for the best momentum results.
- If the Trend Power line frequently switches colors, skip trades as it indicates weak or choppy trends.
- Always backtest and forward-test before using the strategy on a live account.
The MACD Crossover Signal Indicator and the Trend Power Indicator form a reliable day trading system for MT4 users.
By aligning momentum and trend direction, traders can capture high-probability entries and manage trades effectively in fast-moving markets.
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Download the “Macd crossover signal.mq4” indicator for Metatrader 4
