The 3 Rules MACD Metatrader 5 custom forex indicator is a variant of the MACD indicator that has additional filters implanted to eliminate false or weak entry signals that usually plague the traditional MACD indicator crossovers signals.
The rules that binds the indicator are quite simple, as it splits the indicator into halves, allowing users take advantage of the first part as a starting point for a trading setup, while the second part can be deployed as a visualizer for the patterns being spotted on the chart.
Furthermore, the indicator plots in colors the formations of possible entry points, numbering them as 1-2-3, with 3 being the highpoint.
The EUR/JPY H1 chart below displays the 3 Rules MACD Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the orange dotted signal line of the 3 Rules MACD forex indicator intersects the blue bold MACD line bottom up, below the zero level, with an encircled dodger blue colored number 3 placed on the intersection point.
Sell Signal: Go short when the orange dotted signal line of the 3 Rules MACD forex indicator intersects the blue bold MACD line top downward, above the zero level, with an encircled red colored number 3 placed on the crossing point.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the lines (dotted orange and bold blue) of the 3 Rules MACD indicator intersects above the zero level.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the lines (dotted orange and bold blue) of the 3 Rules MACD indicator intersects below the zero level.
Tips: The 3 Rules MACD Metatrader 5 forex indicator is an excitingly improved MACD indicator variant that works great for all kinds of traders.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (Fast MA Period, Slow MA Period, Signal Line Period), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the Minions.3RulesMACD_Patterns.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)