The MACD Forex Alert indicator for Metatrader 4 provides signal alerts whenever the histogram bars turn back above or below the 0.00 level.
So, make sure to turn on the alerts function!
The MACD Forex Alert can be used in various ways. See an example below.
Buy & Sell Trade Example
- Open a buy trade as soon as the MACD Forex Alert histogram bars turn back above the 0.00 neutral level.
- Open a sell trade as soon as the MACD Forex Alert histogram bars turn back below the 0.00 neutral level.
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 Alert.ex4” indicator for MT4
Indicator Chart (EUR/USD M30)
The picture below shows the MACD Forex Alert 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 Forex Alert 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 Forex Alert + Advanced Bollinger Bands Forex Trend Strategy
This trend trading strategy combines the MACD Forex Alert Indicator for MT4 with the Advanced Bollinger Bands Metatrader 4 Forex Indicator.
The MACD Forex Alert generates buy signals when the MACD is above zero and sell signals when it is below zero.
The Advanced Bollinger Bands indicate trend direction: rising bands signal a bullish trend and falling bands signal a bearish trend.
Using both indicators together helps traders align with the market trend for higher-probability trades.
Why this strategy works
This strategy works by combining momentum and trend confirmation.
The MACD shows market momentum, while the Bollinger Bands display the current trend direction.
Entering trades when both indicators align reduces the risk of countertrend trades and increases the chance of capturing sustained moves.
Buy Entry Rules
- Wait for the MACD Forex Alert to be above zero.
- Confirm that the Advanced Bollinger Bands are rising, 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 lower Bollinger Band or the most recent swing low.
- Set the take profit near the next resistance level or use a 1:2 risk-reward ratio.
- Exit early if the MACD turns below zero or the Bollinger Bands start falling.
Sell Entry Rules
- Wait for the MACD Forex Alert to be below zero.
- Confirm that the Advanced Bollinger Bands are falling, 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 upper Bollinger Band or the most recent swing high.
- Set the take profit near the next support level or use a 1:2 risk-reward ratio.
- Exit early if the MACD turns above zero or the Bollinger Bands start rising.
Advantages
- Aligns momentum and trend direction for higher-probability trades.
- Clear visual signals make it easy to identify trade opportunities.
- Works well on H1 and H4 charts for trend trading.
- Reduces countertrend entries and false signals.
- Structured stop loss and take profit help manage risk effectively.
Drawbacks
- Signals may lag during sharp reversals, leading to delayed entries.
- Requires monitoring of both indicators simultaneously to confirm trades.
Case Study 1 – EUR/GBP H1
During the London session, EUR/GBP showed MACD above zero while the Bollinger Bands were rising.
A buy trade was entered at 0.8725 with a stop loss at 0.8710 and a take profit at 0.8750.
The trade reached the target within three hours, producing a 25-pip gain.
Case Study 2 – USD/JPY H1
During the New York session, USD/JPY showed MACD below zero while the Bollinger Bands were falling.
A sell trade was entered at 149.50 with a stop loss at 149.70 and a take profit at 149.20.
The trade reached the take profit in 2.5 hours, resulting in a 30-pip gain.
Strategy Tips
- Use H1 or H4 charts to capture intraday and swing trends effectively.
- Focus on highly liquid pairs such as EUR/GBP, USD/JPY, EUR/USD, and GBP/USD for smoother trends.
- Adjust stop loss and take profit according to market volatility and session behavior.
- Wait for both indicators to align before entering a trade to improve the success rate.
- Consider using trailing stops in strong trends to maximize profits.
- Regularly monitor the market for unexpected reversals or consolidation periods.
This trend strategy aligns momentum and market direction, providing disciplined trade entries and exits for consistent trend trading results with effective risk management.
