The Normalized Smoothed MACD indicator for Metatrader 5 represents a buy/sell trading tool that works pretty well for scalpers and intraday traders.
MACD stands for Moving average convergence/divergence.
The indicator pops up in a bottom chart as two colored signal lines that provide trend direction.
It can be used as a standalone buy/sell signals indicator.
How to interpret the Normalized Smoothed MACD technical indicator?
- The blue signal line indicates a short-term buy trend.
- The brown signal line indicates a short-term sell trend.
The indicator contains the following inputs and parameters: MACD fast period, MACD slow period, signal period, price, smoothing period, normalization period.
Make yourself familiar with this technical indicator and test it first on a demo account for an extended period of time.
It supports all time frames and Forex pairs.
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The following chart shows how the Normalized Smoothed MACD Forex indicator looks like when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The Normalized Smoothed MACD Indicator?
Find a simple trading example below:
- A buy signal occurs when the blue colored line appears on the chart and the market is in an uptrend.
- Open a long trade and place your stop loss below the most recent support zone.
- Exit the buy trade for a fixed take profit or hold the trade until the brown colored MACD line pops up on the chart.
- A sell signal occurs when the brown colored line appears on the chart and the market is in a downtrend.
- Execute a sell order and place your stop loss above the most recent resistance zone.
- Exit the sell trade for a fixed take profit or hold the trade until the blue colored MACD line pops up on the chart.
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Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the Normalized smoothed MACD.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
How Do I Edit This Indicator?
- Click in the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on properties
- Now you can edit the inputs, colors, levels, scale and visualization
- Finally click the OK button to save the new configuration