The MACD Support & Resistance indicator for Metatrader 4 draws interesting support & resistance lines on the trading chart.
The indicator appears in the main chart in the form of purple and red colored lines.
Key Takeaways:
- The purple line acts as resistance.
- The red line acts as support.
The MACD Support & Resistance 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.
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Download the “Macd_Support_and_Resistance.mq4” indicator for MT4
Indicator Chart (EUR/USD Daily)
The picture below shows the MACD Support & Resistance 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 Support & Resistance 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 Support & Resistance + Advanced Get Oscillator (MT4)
This day trading strategy combines the MACD Support & Resistance and the Advanced Get Oscillator on MetaTrader 4 (MT4) to identify high-probability buy and sell opportunities.
The MACD Support & Resistance indicator provides dynamic support and resistance levels, while the Advanced Get Oscillator offers momentum insights.
This strategy is suitable for day trading on M15 and H1 timeframes and works well for pairs like AUD/USD, USD/JPY, and EUR/JPY.
Buy Entry Rules
- Wait for the price to approach the red support line (from the MACD Support & Resistance indicator).
- Ensure the Advanced Get Oscillator histogram is above 0, indicating bullish momentum.
- Enter a buy position when the price bounces off the support line and the histogram remains positive.
- Set a stop loss just below the support line or a fixed number of pips, depending on your risk tolerance.
- Set a take profit target at the purple resistance line or use a risk-to-reward ratio of at least 1:2.
Sell Entry Rules
- Wait for the price to approach the purple resistance line (from the MACD Support & Resistance indicator).
- Ensure the Advanced Get Oscillator histogram is below 0, indicating bearish momentum.
- Enter a sell position when the price reverses from the resistance line and the histogram remains negative.
- Set a stop loss just above the resistance line or a fixed number of pips.
- Set a take profit target at the red support line or use a risk-to-reward ratio of at least 1:2.
Advantages
- Combines dynamic support and resistance levels with momentum insights 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.
- Flexible for different currency pairs with sufficient liquidity.
Drawbacks
- Not suitable for low-liquidity pairs due to potential slippage and wider spreads.
- Performance can vary depending on market session and time of day.
- Indicators may lag slightly, causing late entries in fast-moving conditions.
- Overtrading is possible if signals are taken too frequently without filtering.
Case Study 1: AUD/USD M15 Buy
On the AUD/USD M15 chart, the price approached the red support line at 0.6750.
The Advanced Get Oscillator histogram was above 0, indicating bullish momentum.
A buy position was entered at 0.6753 when the price bounced off the support line.
The stop loss was set at 0.6740 (-13 pips), and the take profit target was 0.6773 (+20 pips).
The trade reached the take profit level within the session, resulting in a +20 pip gain.
Case Study 2: EUR/JPY H1 Sell
During the Tokyo session on EUR/JPY H1, the price approached the purple resistance line at 144.50.
The Advanced Get Oscillator histogram was below 0, indicating bearish momentum.
A sell position was entered at 144.47 when the price reversed from the resistance line.
The stop loss was set at 144.65 (+18 pips), and the take profit target was 144.10 (-37 pips).
The price declined steadily and reached the take profit level within the session, resulting in a +37 pips profit.
Strategy Tips
- Use M15 and H1 charts for day trading to capture intraday trends.
- Focus on major and liquid currency pairs like AUD/USD, EUR/JPY, and USD/JPY.
- Apply proper risk management with stop losses and take profit targets.
- Combine with basic support and resistance analysis to improve trade accuracy.
By combining the MACD Support & Resistance and the Advanced Get Oscillator, traders can develop a reliable MT4 day trading strategy that leverages both dynamic price levels and momentum for high-probability trades on M15 and H1 timeframes.
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Download the “Macd_Support_and_Resistance.mq4” indicator for Metatrader 4
