The Visual MACD Metatrader 4 Forex indicator is a consistent swing trading technical indicator.
It is a short-term trend following indicator.
Hence, we recommend that you enter trades from the Visual MACD in the direction of the major trend and avoid trading against the major trend.
The Visual MACD indicator consists of wave-like bodies and two attached averages that run along.
The bigger the wave on the Visual MACD indicator, the stronger the trend in focus.
You should buy and sell on the grounds of the crossovers of the Visual MACD indicator, as such buy when pthe rice crosses above the indicator, and sell when the reverse happens.
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Indicator Chart (EUR/USD H1)
The EUR/USD H1 chart below displays the Visual MACD Metatrader 4 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the Visual MACD Metatrader 4 forex indicator forms a dark slate blue cloud that is aligned slightly below the candlesticks.
Sell Signal: Go short when the Visual MACD Metatrader 4 forex indicator forms a maroon cloud that is positioned somewhat above the price bars.
Exit buy trade: Close all buy orders while a bullish trend is ongoing, the yellow and medium turquoise lines of the Visual MACD indicator intersect.
Exit sell trade: Close all sell orders while a bearish trend is running, the yellow and medium turquoise lines of the Visual MACD indicator cross.
Tips: If you have the requisite discipline needed to follow the rules when trading the Visual MACD indicator, then you stand to make a lot of pips from this technical indicator.
Visual MACD Indicator and Zee Zee Alert Forex Scalping Strategy
This strategy combines the Visual MACD MT4 Indicator and the Zee Zee Alert MT4 Indicator.
The Visual MACD shows a cloud where dark slate blue signals a buy trend and maroon signals a sell trend.
The Zee Zee Alert shows lines: red for buy signals and blue for sell signals.
Combining trend direction with precise entry alerts makes this strategy suitable for scalping short-term moves.
It works best on M1 and M5 charts and is designed for traders looking to capture fast trend-aligned trades with clear entry and exit rules.
Buy Entry Rules
- The Visual MACD cloud must be dark slate blue, indicating a bullish trend.
- The Zee Zee Alert shows a red line, signaling a buy.
- Enter a long position at the close of the candle with the red line while the cloud remains bullish.
- Place a stop loss a few pips below the most recent swing low on the same timeframe.
- Exit when the Zee Zee Alert red line disappears or the cloud turns maroon.
Sell Entry Rules
- The Visual MACD cloud must be maroon, indicating a bearish trend.
- The Zee Zee Alert shows a blue line, signaling a sell.
- Enter a short position at the close of the candle with the blue line while the cloud remains bearish.
- Set a stop loss a few pips above the most recent swing high.
- Exit when the Zee Zee Alert blue line disappears or the cloud turns dark slate blue.
Advantages
- The Visual MACD cloud clearly shows trend direction.
- The Zee Zee Alert provides timely entry signals.
- Suitable for scalping with multiple opportunities on M1 and M5.
- Stop loss and exit rules are simple and well-defined.
- Helps avoid trading against the trend and reduces noise.
Drawbacks
- Cloud color can change quickly in choppy markets, causing false signals.
- Alert lines alone may produce whipsaw trades without trend confirmation.
- Exit signals may occur late in fast reversals.
Example Case Study 1
On EUR/GBP M1 during the London session, the Visual MACD cloud turned dark slate blue.
A red Zee Zee Alert line appeared, signaling a buy.
A long trade was entered at candle close, stop loss 5 pips below the swing low.
Price moved upward, and the red line disappeared after a few bars, resulting in an 8-pip profit.
Example Case Study 2
On AUD/USD M5 during New York hours, the cloud turned maroon, signaling a downtrend.
A blue Zee Zee Alert line appeared, signaling a sell.
A short trade was entered at candle close with a stop loss 7 pips above the recent high.
Price dropped, and the cloud later flipped to dark slate blue, closing the trade for a 15-pip profit.
Strategy Tips
- Trade during active sessions like London and New York for clearer cloud signals and alert lines.
- Avoid trades when the cloud is flat or slowly changing, which indicates a weak trend.
- Use small positions because tight stops and rapid scalps increase risk.
- Wait for the alert line only after the cloud is fully formed for stronger confirmation.
- Keep a trading journal to track which currency pairs work best on M1 and M5.
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MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customization options: Variable (ma_1, ma_2, method, price, signal, s_method, signal2, s_method2, color1, color2, color3, color4), width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend
