When it comes to trading forex, your success partly depends on the kind of indicators you use. This is why traders must understand everything about an indicator or any other trading tool before using them. Though everything does not rely on your indicators alone, their combination with your strategies and skills will help at increasing your chances of making more profits. One of the indicators have been tested and proven to enhance your trade Is the 2 Line MACD Indicator For MT4. The indicator enables you to decide when to enter a trade and lower the chances of a loss. It is, therefore, important to have this fantastic indicator in your trading arsenal alongside other useful tools. The article today will define what the 2 Line MACD Indicator is, what to look out for when using it, how to install and set up the indicator, and how to set up charts. So will this one make our Best Metatrader indicators page?
What is 2 Line MACD Indicator for MT4?
2 Line MACD Indicator For MT4 (2line_MACD) is an in-demand custom forex indicator which comprises of three important elements. These elements include MACD signal line (9-period exponential moving average of the MACD, MACD 12-period exponential moving average (12 EMA), and 26 period EMA MACD histograms. The (T_S_R)-Signal line is an indicator that follows a trend and has a default period of 1. The (T_S_R)-Slope Direction Line, on the other hand, has a default period of 80, though a trend following indicator also, making it to lag more.
Important tips to follow while using the indicator
No indicator is 100% immune against failures. This is why you must use the 2 Line MACD Indicator For MT4 with care. Even though you are employing the best trading strategies or skill sets, you still have to be watchful because it is better to err on the side of caution. To help you trade without much error, you need to follow these tips: 1. Ensure that you test every strategy you are using before letting down your guards. 2. Auto-trading programs, such as the expert advisors would need to pass through a longer period of test, compared to ordinary indicators. 3. Detect all possible errors by first testing back and forth. 4. Test your methods using a demo account if you are satisfied with the results of the initial tests. 5. Progress to live trading. Ensure you understand the weakest point of the system and how to mitigate it. 6. Make use of other important tools that complement the indicator. You can use this one also in combination with the macd divergence indicator mt4.
How to install the 2 Line MACD Indicator
Like any other custom indicator, installing the 2 Line MACD Indicator for MT4 is quite simple and will usually take a few seconds to accomplish if it is done right. For the newcomers, here are the steps to take: 1. Download the 2 Line MACD Indicator. 2. Extract the MACD 2Line.rar you have downloaded. 3. In the “File menu in the MT4 platform, click “open data folder.” 4. Open the Mql4 folder. 5. Click to open the indicators folder. 6. Paste the MACD 2ine.ex4 and MACD 2Line.mq4 files into the indicators folder. 7. Start the MetaTrader4 again. 8. Your indicator is successfully installed.
The following settings are highly recommended:
MetaTrader 4 Indicators:
2Line_MACD.ex4 (default setting) (T_S_R)-Signal Line (default setting) (T_S_R)-Slope Direction Line.ex4 (default setting). Desired Time Frame(s): 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1 Hour. Trading Sessions that are recommended: New York and London. Currency Pairs: USD/CAD, USD/CHF, USD/JPY, EUR/USD, AUD/USD, EUR/JPY, GBP/USD, EUR/CHF, NZD/USD, GBP/JPY
Buy Trade Example
Long Entry Rules
In case, the following chart or patterns are visible, then it is the time to enter a buy in the market. 1. If the light blue ribbon of the (T_S_R)-Slope Direction Line custom indicator is crossed by a lime ribbon of the (T_S_R)-Signal Line custom indicator bottom up, then it is a buy signal showing a bullish price. 2. While when the blue line of the 2 Signal Line MACD (2line_MACD) custom indicator overlaps the red dotted line bottom up; it hints to long on the currency pair that you desire. Stop Loss for Buy Entry: Stop loss should be placed underneath the support. Exit Strategy/Take Profit for Buy Entry When the following pattern of the chart is displayed, you have to exit or take profit on position(s): 1. When the (T_S_R)-Slope Direction Line ribbon is crossed by the red line of the (T_S_R)-Signal Line downwards; then it is a prompt to take profit or exit. 2. While once the 2 Signal Line MACD (2Line_MACD) custom indicator blue line overlaps its red dotted line top downwards as you can see in Fig. 1.0, it is an indication that a reversal in price is about to occur, i.e. it is recommended to exit or take profit. To get an extra entry confirmation you can combine this with a price action indicator mt4.
Sell Entry Rules
If the following conditions are present, enter a sell order:
1. The 2 Signal Line MACD (2Line_MACD) custom indicator’s blue line overlaps its red dotted line top downward, it is a prompt to go short.
2. The red ribbon of the (T_S_R)-Signal Line custom indicator overlaps the tomato ribbon of the (T_S_R)-Slope Direction Line custom indicator up downwards, as you can see in Fig. 1.1 above, it is an alert to sell on your currency pair.
Stop Loss for Sell Entry: Stop Loss should be placed higher than resistance.
Exit Strategy/Take Profit for Sell Entry
If the following chart patterns are shown, you have to exit or take profit on order(s): When the red lime ribbon of the (T_S_R)-Signal Line custom indicator overlaps the (T_S_R)-Slope Direction Line custom indicator ribbon, it is a signal to take profit or exit. While once the blue line of the 2 Signal Line MACD overlaps its red dotted line bottom up, it is an alert to take profit or exit (Fig. 1.1)
Conclusion On 2 Line MACD Indicator For MT4
Traders should not depend on their intellectual knowledge alone to enter or exit a trade. If you are keen on earning profit and minimizing losses, you need to combine indicators, other basic tools, skills and strategies. It to help enhance your trading capability. While other indicators are helpful, the 2 Line MACD Indicator, as a custom indicator, follows the market trends to provide you with the right signal and trigger to enter or exit a trade. This platform provides you with the ideal indicators and tools that you will ever need to help you become a better forex trader through this link. Leverage them today to take your trade to the next level of profitability. So keep checking our forex articles on our best forex indicator blog!