The MACD Signal Bars MT4 indicator displays MACD green and red signal bars in an histogram window below the main activity chart.
The signals generated by the indicator are based on MACD.
The indicator settings can be customized directly from the indicator’s input tab.
Green histogram bars suggest the trend is bullish while red bars suggest the trend is bearish.
This indicator is beginner friendly and can be used for short-term trend trading (scalping & day trading).
Free Download
Download the “macd-bars.mq4” MT4 indicator
Indicator Chart (EUR/USD H1)
The EUR/USD H1 chart below displays the MACD Signal Bars forex indicator in action.
Basic Trading Signals
Signals from the MACD Signal Bars are easy to interpret and goes as follows:
Buy Signal: Open buy order at the first green histogram bar.
Sell Signal: Open sell order at the first red histogram bar.
Trade Exit: Close the open trade when an opposite signal occurs, or use your own method of trade exit.
MACD Signal Bars and Forex Trend Manager MT4 Scalping Strategy
This MT4 scalping strategy combines the MACD Signal Bars Indicator with the Forex Trend Manager Indicator to create a fast and clear scalping system.
The Forex Trend Manager indicator uses colored clouds to define the current market direction, while the MACD Signal Bars indicator provides precise entry signals based on histogram color changes.
Together they help you trade with trend confirmation and timely entries on lower time frames.
This strategy works best on M1, M5, and M15 charts and is ideal for major currency pairs with strong liquidity and clear directional movement.
By only entering trades when both trend clouds and MACD histogram align, you improve your probability of catching quick price moves with reduced noise and false signals.
Buy Entry Rules
- The Forex Trend Manager cloud is blue indicating bullish trend conditions.
- The MACD Signal Bars indicator prints the first green histogram bar after a reset.
- Enter a buy trade at the close of the candle where the first green histogram bar appears.
- Place the stop loss below the recent swing low or just below the blue cloud area.
- Exit the trade when the cloud turns red or when a red histogram bar appears on the MACD Signal Bars.
Sell Entry Rules
- The Forex Trend Manager cloud is red indicating bearish trend conditions.
- The MACD Signal Bars indicator prints the first red histogram bar after a reset.
- Enter a sell trade at the close of the candle where the first red histogram bar appears.
- Place the stop loss above the recent swing high or just above the red cloud area.
- Exit the trade when the cloud turns blue or when a green histogram bar appears on the MACD Signal Bars.
Advantages
- Combines trend direction and momentum for higher probability scalps.
- Clear histogram and cloud visuals make entries easier to spot.
- Works well on fast time frames including M1, M5, and M15.
- Reduces countertrend scalping by requiring cloud alignment.
Drawbacks
- Signals may lag slightly after rapid price spikes.
- Needs tight risk management to protect profits.
- May generate fewer signals when price consolidates.
Case Study 1
On USDCHF M5 during the London session, the Forex Trend Manager cloud turned blue indicating bullish conditions.
Shortly after, the MACD Signal Bars printed the first green histogram bar following a brief pullback.
A buy trade was opened at the close of the signal candle with a stop loss placed just below the recent swing low.
Price moved quickly upward with strong momentum, and the trade was exited when the cloud turned red, capturing 22 pips.
Case Study 2
On EURJPY M1 during the New York session, the Forex Trend Manager cloud was red indicating bearish conditions.
The MACD Signal Bars indicator printed the first red histogram bar after a small consolidation.
A sell trade was entered at candle close with a stop above the recent swing high.
Price declined sharply and the position was closed when a green histogram bar appeared, making 14 pips.
Strategy Tips
- Only take buy signals when the cloud is blue and sell signals when the cloud is red to maintain trend alignment.
- Focus on major and liquid pairs with tighter spreads to improve scalping performance.
- Use higher time frames for context before entering lower time frame scalps.
- Keep stop losses tight but logical based on recent structure.
- Combine volume context and recent price action to confirm strength before entering.
- Limit the number of trades per session to avoid fatigue and overtrading.
Download Now
Download the “macd-bars.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern
Customization options: Variable (FastEma, SlowEma, SignalSMMA, MaxBars) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Oscillator
