The Digital MACD V2 forex indicator is a simplified variant of the highly popular MACD indicator.
MACD is often used in successful forex systems and trading strategies.
How it works
The Digital MACD V2 fluctuates above and below the 0.00 zero level.
- The trend is considered bullish when the Digital MACD histogram is positioned above the zero level
- The trend is considered bearish when the Digital MACD histogram is positioned below the zero level
Using the Digital MACD V2 indicator together with other technical indicators will yield better trading results.
For example, mix it with Parabolic SAR, moving averages or Bollinger Bands.
For scalping and day trading, deploy the indicator on low spread currency pairs, such as EUR/USD, GBP/USD, AUD/USD and USD/JPY.
The default signal MA period is set to 5. Feel free to experiment with this setting.
The EUR/USD 1-Hour chart below displays the Digital MACD V2 Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Digital MACD V2 MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy trade position when the green Digital MACD V2 histogram is positioned above the zero mark.
Sell Signal: Open sell trade position when the green Digital MACD V2 histogram is positioned below the zero mark.
Trade Exit : Use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (signal MA period, count bars) 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 digital-macd-v2-indicator.mq4 into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)