The MACD Signal Oscillator indicator for Metatrader 4 is a simplified version of MACD and consists of only one buy & sell signal line.
The indicator appears in a separate MT4 chart window in the form of an oscillator without extreme borders.
Signals from this indicator are easy to trade for anyone!
Buy & Sell Trade Example
- Open a buy trade when the green MACD signal line crosses back above the 0.00 level.
- Open a sell trade when the green MACD signal line crosses back below the 0.00 level.
The MACD Signal Oscillator indicator can be used as a standalone trading tool for both trade entries and exits.
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-trad-indicator.mq4” indicator for MT4
Indicator Chart (EUR/USD H1)
The example chart below displays the MACD Signal Oscillator mt4 indicator in action.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method to trade with the MACD Signal Oscillator 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.
Day Trading Strategy: MACD Signal Oscillator + AG Renko Chart Indicator (MT4)
This day trading strategy combines the MACD Signal Oscillator and the AG Renko Chart Indicator on MetaTrader 4 (MT4) to identify high-probability buy and sell opportunities.
The MACD Signal Oscillator provides momentum insights, while the AG Renko Chart Indicator offers trend direction clarity.
This strategy is suitable for day trading on M15 and H1 timeframes.
Buy Entry Rules
- Wait for the MACD Signal Oscillator’s green line to cross above the zero level, indicating bullish momentum.
- Confirm that the AG Renko Chart Indicator displays a blue line, signaling a bullish trend.
- Enter a buy position at the close of the candlestick that confirms both conditions.
- Set a stop loss just below the recent swing low or a fixed number of pips, depending on your risk tolerance.
- Set a take profit target using a risk-to-reward ratio of at least 1:2, or exit when the MACD line crosses below the zero level or the AG Renko line turns red.
Sell Entry Rules
- Wait for the MACD Signal Oscillator’s green line to cross below the zero level, indicating bearish momentum.
- Confirm that the AG Renko Chart Indicator displays a red line, signaling a bearish trend.
- Enter a sell position at the close of the candlestick that confirms both conditions.
- Set a stop loss just above the recent swing high or a fixed number of pips.
- Set a take profit target using a risk-to-reward ratio of at least 1:2, or exit when the MACD line crosses above the zero level or the AG Renko line turns blue.
Advantages
- Combines momentum (MACD) with trend direction (AG Renko) for higher probability trades.
- Reduces market noise, allowing for clearer trade signals.
- Works effectively on M15 and H1 timeframes for day trading.
- Helps in identifying trend reversals and continuations with minimal lag.
Drawbacks
- False signals can occur during ranging or choppy markets, leading to small losses.
- Requires constant monitoring of charts, which can be time-consuming for day traders.
- Not ideal for low-liquidity pairs due to potential slippage and wider spreads.
- Traders need to combine it with proper money management; otherwise, small losses can accumulate quickly.
Case Study 1: EUR/USD M15 Buy
On the EUR/USD M15 chart, the MACD Signal Oscillator’s green line crossed above the zero level, indicating bullish momentum.
The AG Renko Chart Indicator displayed a blue line, confirming a bullish trend.
A buy position was entered at 1.1050.
The stop loss was placed at 1.1030 (-20 pips), and the take profit target was set at 1.1075 (+25 pips).
The price moved upward and hit the take profit level within the session, resulting in a +25 pips gain.
Case Study 2: GBP/USD H1 Sell
During the London session on GBP/USD H1, the MACD Signal Oscillator’s green line crossed below the zero level, indicating bearish momentum.
The AG Renko Chart Indicator showed a red line, confirming a bearish trend.
A sell position was entered at 1.2800.
The stop loss was set at 1.2820 (-20 pips), and the take profit target was 1.2770 (+30 pips).
The price declined steadily and reached the take profit level within the session, resulting in a +30 pips profit.
Strategy Tips
- Use M15 and H1 charts for day trading to capture intraday trends.
- Focus on major currency pairs like EUR/USD, GBP/USD, and USD/JPY for better liquidity.
- Always apply proper risk management with stop losses and take profit targets.
- Test the strategy on a demo account before trading live.
By combining the MACD Signal Oscillator and the AG Renko Chart Indicator, traders can develop a robust MT4 day trading strategy that leverages both momentum and trend direction for high-probability trades.
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Download the “macd-trad-indicator.mq4” indicator for Metatrader 4
